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¢ www.mathxl.com/Stu mework.aspx?homeworkld-484932566&questionlds48;/ Do hapter 5: Problems 4018(4 complete) he adjusted trial balance of Thomas Department Store at December 31, 2016, follows ep income statement for the year ended December 31, 2016. Assume ending Merchandise Inventory is $36,200 (Use a e statement in the next step. nt 31, 2016 Requirements 1. Prepare Thomas Department Store's multi-step income statement for the year ended December 31, 2016. Assume ending Merchandise Inventory is $36,200 2. Journalize Thomas Department Store's closing entries. Print Done lds and then click Check Answer Clear AllExplanation / Answer
Multistep income statement
Explanation
Debit
credit
cost of goods sold
sales revenue
400000
beginning inventory
37200
less discount
4800
add net purchases = purchases-purchase return-discount
168400
less sales return
6200
add freight in
600
net sales
389000
less year end inventory
36200
less cost of goods sold
170000
cost of goods sold
170000
gross profit
219000
less operating expenses
68100
selling expense
41800
administrative expenses
26300
operating profit
150900
less interest expense
3600
net profit
147300
Multistep income statement
Explanation
Debit
credit
cost of goods sold
sales revenue
400000
beginning inventory
37200
less discount
4800
add net purchases = purchases-purchase return-discount
168400
less sales return
6200
add freight in
600
net sales
389000
less year end inventory
36200
less cost of goods sold
170000
cost of goods sold
170000
gross profit
219000
less operating expenses
68100
selling expense
41800
administrative expenses
26300
operating profit
150900
less interest expense
3600
net profit
147300
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