past several years, net income Wolford Department Store is located in midtown Me
ID: 2510771 • Letter: P
Question
past several years, net income Wolford Department Store is located in midtown Metropolis. During the 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, 2017, these accounts appeared in its adjusted trial balanoe Accounts Payable $ 32,160 Accounts Receivable 20,640 Accumulated Depreciation-Equipment 81,600 Cash 9,600 Common Stock 42,000 Cost of Goods Sold 737,160 Freight-Out 7,440 Equipment 188,400 Depreciation Expense 16,200 Dividends 14,400 Gain on Disposal of Plant Assets 2,400 Income Tax Expense 12,000 nsurance Expense 10,800 Interest Expense 6,000 Inventory 31,440 Notes Payable 52,200 Prepaid Insurance 7,200 Advertising Expense 40,200 Rent Expense 40,800 Retained Earnings 17,040 Salaries and Wages Expense 140,400 Sales Revenue 1,084,800 Salaries and Wages Payable 7,200 Sales Returns and Allowances 24,000 Utilities Expense 12,720Explanation / Answer
Income statement: Amount$ Sales revenue 1084800 Less: Sales return -24000 Net Sales 1060800 COGS -737160 Freight out -7440 Gross Profit 316200 Less: Expenses: Dep exp 16200 Ins exp 10800 Int exp 6000 Adv exp 40200 rent exp 40800 S & W exp 140400 Utilities exp 12720 Total expenses 267120 Income befor other income 49080 Gain on disposal 2400 total income 51480 IT exp -12000 Net Income 39480 Statement of Retained Earnings Amount$ CS 42000 RE 17040 Add: Net Income 39480 Total Equity 98520 Less:Dividend -14400 SH Equity 84120 Balance Sheet: Liabilities Amount $ Assets Amount $ AP 32160 Cash 9600 NP 52200 AR 20640 S&W payable 7200 Inventory 31440 Current Liabilities 91560 Prepaid Insu 7200 SH Equity 84120 Current Assets 68880 Equip 188400 Acc. Dep -81600 Total Liabilities 175680 Total assets 175680
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