What would be the net sale? The adjusted trial balance for Chiara Company as of

Question

What would be the net sale? The adjusted trial balance for Chiara Company as of December 31, 2017, follows Debit Credit $ 30,000 52,000 18,000 168,800 16,800 168,808 Cash Accounts receivable Interest receivable Notes receivable (due in 90 days) Office supplies Automobil Accumulated depreciation-Automobiles Equipment Accumulated depreciation-Equipment Land Accounts payable Interest payable Salaries payable Unearned fees Long-term notes payable Common stock Retained earnings Dividends s 50,e00 138,800 18,000 96,800 28,800 19,800 30,080 138,800 20,600 235,880 78,000 46,e00 Fees earned 484,000 24,880 Interest earned Depreciation expense-Automobiles Depreciation expense-Equipment Salaries expense Wages expense Interest expense Office supplies expense Advertising expense Repairs expense-Automobiles Totals 26,800 18,000 188,000 40,000 32,e00 34,800 58,800 24,800 $1,134, 880 $1,134,886 2. Calculate the profit margin for year 2017 earch up 1/1/1/1/1/1/1/1/1/1/1/1/1/1/1/1/1/1/1 / 1/1/1/1

Explanation / Answer

Solution 2:

Profit margin for 2017 = Net Incone / Fees earned = $87,200 / $484,000 = 18.02%

Net sales = Fees earned = $484,000

Income Statement - Chiara Company For the year ended December 31, 2017 Particulars Amount Fees Earned $484,000.00 Operating Expenses: Depreciation Expense - Automobiles $26,000.00 Depreciation Expense - Equipment $18,000.00 Salaries Expense $188,000.00 Wages Expense $40,000.00 Office Supplies Expense $34,000.00 Advertising Expense $58,000.00 Repair Expense - Automobiles $24,800.00 Operating Income $95,200.00 Add: Interest Earned $24,000.00 Less: Interest Expense $32,000.00 Net Income $87,200.00

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