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P5-33A The records of Grade A Steak Company list the following selected accounts for the

Price: $3.99


P5-33A Preparing a multi-step income statement and calculating gross profit
percentage [15–25 min]

The records of Grade A Steak Company list the following selected accounts for the
quarter ended April 30, 2012:
Interest revenue $800 Accounts payable $17,000
Inventory 45,100 Accounts receivable 33,500
Note payable, long–term 47,000 Accumulated depreciation 37,600
Salary payable 2,400 Angus, capital, Jan 31 53,300
Sales discounts 2,000 Angus, drawing 20,000
Sales returns and allowances 7,500 Cash 7,600
Sales revenue 296,100 Cost of goods sold 162,100
Selling expense 38,300 Equipment 130,600
Supplies 5,700 General expenses 16,300
Unearned sales revenue 13,300 Interest payable 1,200

Requirements
1. Prepare a multi-step income statement.

2. M. Davidson, manager of the company, strives to earn gross profit percentage of
at least 50% and net income percentage of 20%. Did Grade A achieve these
goals? Show your calculations

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