brunette375 Posts: 1, Reputation: 1 New Member #1 Feb 24, 2008, 11:40 AM
Cost of Goods Sold (Multi-step Income Statement)
Hello, I'm new to this site. I have a homework question that I am confused about. I was wondering if someone could possibly help me with it.

The question asks to find the beginning and ending balance of the cost of goods sold on the multi-step income statement for each fiscal year and I'm not sure how I would find that.
 morgaine300 Posts: 6,561, Reputation: 276 Uber Member #2 Feb 24, 2008, 11:10 PM
That's a really weird question. There's no such thing as a beginning balance for that accounts. It's an expense account, and expense accounts "close out" to zero at the end of each year, and therefore start over again at zero. So I don't see how you could possibly find it.

And anything found on an income statement should be an ending balance. If they literally mean "find" it -- it's under the net sales. If they mean to calculate it... um, are you doing perpetual method?

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