Problem 3-4 The trial balance of Teal Fashion Center contained the following acc

Question

Problem 3-4 The trial balance of Teal Fashion Center contained the following accounts at November 30, the end of the company's fiscal year TEAL FASHBON $33,410 Accounts Receivabl Buppliea 39,900 $26,520 54,450 Notes Payabla Acoounts Payable Retained Eamings Salea Fwenue Sales Returns and Allowances 03,450 1,450 765360 t of Goods Sold Salaries and Waes Expense Advertising Expense lts Expensas Maintenance and Repairs Expense Dewery Expense Rent Expense 4,200 495,400 138,400 27,800 15,600 12,100 16,700 Adjustment data 1. Supples on hand totaled $4,950 2. Depreciation #1 6800 on the equipment. 3. Interest of $11,720 is aocrued on notes payable at Nowember a0 Other data 2. 3. 4. Rent expense and uclities expenses are 80% selling and 20% adrinistrative. $30,000 of notes payable are due for payment next year Maintenance and repara espensù ia 1 00% administratie

Explanation / Answer

Income statement Sales Revenue 765360 Less: Sales return and allowances -4200 Net Sales 761160 Less : Cost of goods Sold -495400 Gross Profit 265760 Operating Expenses Selling Expenses Advertising expenses 27660 Salaries and wages 96880 delivery expenses 16700 Rent expenses 20208 Administrative Expenses Supplies expense 4000 Utilities expense 15600 Maintenance and repairs expenses 12100 Salaries and wages 41520 Rent expenses 5052 Depreciation 16800 Total Operating expenses -256520 Net Income 9240 Less : Interest 11720 Net income before tax -2480 Retained earnings 2480 To Net Loss 2480 Balance Sheet of Teal Fashion Center Assets Cash and cash equivalents 33410 Receivables, net 37150 Merchandise inventories, net 48450 Supplies on hand 4950 Total current assets 123960 Equipment 139900 Less accumulated depreciation -43320 Net Equipment 96580 Total assets 220540 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable 51950 Notes payable 54450 Interest payable 11720 Total current liabilities 118120 Stockholders equity: Common Stock 93450 Retained earnings 8970 102420 Total Liabilities 220540

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.