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Question: specialty merchandising has just completed their second year end len...

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Specialty Merchandising has just completed their second year end. Len Simmons, owner, has asked you to prepare a Mulbi-step Income Statement for the year ended December 31, 2015. Len has prepared a Iist of accounts in alphabetical order with normal balances. All adjusting entries, but no closing entries Question#5-Financial Statements-eMarksi have been made. (the previous year closing balance of the inventory account was $12,000) Specialty Merchandising Account Balances December 31, 2015 Balance Account Name L. Simmons, L. Simmons, withdrawals 28,000 Inventory Cant 159,000 Accounts Payable Accum. Amortization. - Accum. Amortization. - 36,000 34,000 17,000 15,000 12,000 8,000 8,000 115,000 22,000 156,000 7,000 46,000 21,000 Mortgage Payable Prepaid insurance Salary Expense Salary Payable Sales discounts Sales returns & allowances Sales Revenues Supplies Supplies expense Unearned service revenue Utilities expense 80,000 80,000 8,000 23,000 6,000 18,000 13,000 285,000 4,000 9,000 11,000 8,000 Amortization Amortization expense- equipment Building Cash Cost of goods sold Equipment Insurance Expense Interest Expense Interest Payable Interest Receivable 14,000 5,000 14,000 Interest Revenue Required a) Prepare, in good format, the Multiple Step Income Statement, for the year ended December 31, 2015 (Place your answer on the following page) (6 marks) b) Calculate Inventory Turnover? (3 marks)
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