Note: Rent and salary expenses are
divided equally between general/administrative and selling
activities. Bigelow uses a perpetual inventory system
1. Prepare a fiscal year 2012 multiple-step income
statement. For distinguished performance, prepare both multiple-
and single-step income statements.
BIGELOW COMPANY
Unadjusted Trial Balance
April 30, 2012 (Fiscal year-end)
Debit
Credit
Cash........................................................................
$2,150
Merchandise
inventory..............................................
12,100
Store
supplies..........................................................
4,600
Prepaid
insurance.....................................................
2,100
Store
equipment.......................................................
42,350
Accumulated depreciation—Store equipment.............
$12,000
Accounts
payable.....................................................
8,700
Common
stock.........................................................
4,500
Retained
earnings.....................................................
25,400
Dividends................................................................
1,800
Sales..........................................................................