Lambert Department Store is located in midtown Metropolis. During the past sever

Question

Lambert Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company’s fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance. Accounts Payable $ 36,716 Accounts Receivable 23,564 Accumulated Depreciation—Equipment 93,160 Cash 10,960 Common Stock 47,950 Cost of Goods Sold 841,591 Freight-Out 8,494 Equipment 215,090 Depreciation Expense 18,495 Dividends 16,440 Gain on Disposal of Plant Assets 2,740 Income Tax Expense 13,700 Insurance Expense 12,330 Interest Expense 6,850 Inventory 35,894 Notes Payable 59,595 Prepaid Insurance 8,220 Advertising Expense 45,895 Rent Expense 46,580 Retained Earnings 19,454 Salaries and Wages Expense 160,290 Sales Revenue 1,238,480 Salaries and Wages Payable 8,220 Sales Returns and Allowances 27,400 Utilities Expense 14,522 Additional data: Notes payable are due in 2018. Prepare a multiple-step income statement. (List other revenues before other expenses.) Comment Expert Answer Anonymous Anonymous answered this 54 minutes later Was this answer helpful? 0 0 85 answers Multiple step Income statement: Particulars Amount $ Amount $ Sales Revenue 1,238,480 Sales Returns and Allowances -27,400 Cost of Goods Sold -841,591 Gross Profit 369,489 Operating Expenses Selling Expenses Freight-Out -8,494 Advertising Expense -45,895 -54,389 Administrative Expenses Salaries and Wages Expense -160,290 Utilities Expense -14,522 Depreciation Expense -18,495 Insurance Expense -12,330 Rent Expense -46,580 -252,217 Operating Income 62,883 Other Income Dividends 16,440 Gain on Disposal of Plant Assets 2,740 Interest Expense -6,850 12,330 Net Income 75,213

Prepare a retained earnings statement. (List items that increase retained earnings first.)

Explanation / Answer

Adjusted Trial Balance Account Title Debit Credit Accounts Payable 36716 Accounts receivable 23564 Accumulated Depreciation - Equipment 93160 Cash 10960 Common Stock 47950 Cost of Goods Sold 841591 Freight Out 8494 Equipment 215090 Depreciation Expense 18495 Dividends 16440 Gain on Disposal of Plant Assets 2740 Income Tax Expense 13700 Insurance Expense 12330 Interest Expense 6850 Inventory 35894 Notes Payable 59595 Prepaid Insurance 8220 Advertising Expense 45895 Rent Expense 46580 Retained Earnings 19454 Salaries and Wages Expense 160290 Sales Revenue 1238480 Salaries and Wages Payable 8220 Sales Returns and Allowances 27400 Utilities Expense 14522 Total 1506315 1506315 Income Statement Sales Revenue 1238480 Less: Sales Returns and Allowances -27400 Net Sales Revenue 1211080 Cost of Goods Sold -841591 Gross Profit 369489 Freight-Out -8494 Advertising Expense -45895 Salaries and Wages Expense -160290 Utilities Expense -14522 Depreciation Expense -18495 Insurance Expense -12330 Rent Expense -46580 Operating Income 62883 Add: Gain on Disposal of Plant Assets 2740 Interest Expense -6850 Income Tax Expense -13700 Dividend -16440 Net Income Transferred to Retained Earnings 28633 Retained Earnings Statement Retained Earnings Beginning Balance 19454 Add: Net Income Transferred from Income Statement 28633 Retained Earnings Balance at the end Nov 30 $48087

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