Question

Crane 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 companys fiscal year on november 30, 2022 these accounts appeared in its adjusted trial balance

Answer 1

Crane Department Store
Retained Earnings Statement
For November 30, 2022
	$
Beginning Retained earnings	23,900.00
Add: Net income	60,080.00
	83,980.00
Less: Dividends	(20,400.00)
Ending Retained earnings	63,580.00

Explanation

Crane Department Store
Income statement
For November 30, 2022
	$	$
Sales		1,536,000.00
Less Sales Returns & Allowance		34,000.00
Net Sales		1,502,000.00
Cost of goods sold		1,036,380.00
Gross Profit		465,620.00
Operating Expenses
Advertising Expense	56,950.00
Freight Out	10,830.00
Depreciation Expense	23,500.00
Insurance expense	15,300.00
Utilities Expense	17,300.00
Salaries & Wage Expense	201,760.00
Rent Expense	57,800.00
Total operating expenses		383,440.00
Income from Operations		82,180.00
Non-Operating
Gain on Disposal of Plant assets	3,400.00
Interest Expense	(8,500.00)
Income Tax Expense	(17,000.00)
Total Non-Operating		(22,100.00)
Net Income		60,080.00