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a) Prepare a multistep income statement for George’s Gardening Supplies for the year ended
December 31, 2016. Calculate the gross profit margin.
b) Prepare the statement of owner’s equity for George’s Gardening Supplies for the year ended
December 31, 2016. George invested an additional $10,000 during the year.
c) Prepare the classified balance sheet for George’s Gardening Supplies at December 31, 2016.
d) Journalize the closing entries for George’s Gardening Supplies for 2016 using the income
summary method.
See Appendix I for solutions.
a) Prepare multistep income statement
Inventory: Merchandising Transactions
Chapter 7
Appendix
