(TCOs B and E) The adjusted trial balance of Gertz Company included the followin
ID: 2504160 • Letter: #
Question
(TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts.
Debit
Credit
Sales
$575,000
Sales returns and allowances
$ 50,000
Sales discounts
9,500
Cost of goods sold
347,000
Freight-out
2,000
Advertising expense
15,000
Interest expense
19,000
Store salaries expense
74,000
Utilities expense
18,000
Depreciation expense
3,500
Interest revenue
25,000
Debit
Credit
Sales
$575,000
Sales returns and allowances
$ 50,000
Sales discounts
9,500
Cost of goods sold
347,000
Freight-out
2,000
Advertising expense
15,000
Interest expense
19,000
Store salaries expense
74,000
Utilities expense
18,000
Depreciation expense
3,500
Interest revenue
25,000
Explanation / Answer
Gertz Company Ltd.
income statement for the year ended December 31, 2010.
Revenue $ Gross Sales 575,000 Less: Sales Returns and Allowances 50,000 Less: sales discounts 9,500 Net Sales 515,500 Cost of Goods Sold Cost of Goods Sold 347,000 Gross Profit (Loss) 168,500 Expenses Freight-out 2,000 Advertising expense 15,000 Interest expense 19,000 Store salaries expense 74,000 Utilities expense 18,000 Depreciation expense 3,500 Total Expenses 131,500 Net Operating Income 37,000 Other Income Interest revenue 25,000 Total Other Income 25,000
Net Profit/ (Loss) 62,000
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