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

$ 97,100 CRANE DEPARTMENT STORE Balance sheet November 30,2022 Assets Current Assets Cash $ 13,600 Accounts Receivable $ 29,000 Inventory 44300 Prepaid Insurance 10200 Total Current Assets Fixed Assets Equipment $ 270,330 Less : Accumulated Depreeation $(115,600) Total Non Current Assets Total Assets Liabilities and Stockholder's Equity Current Liabilities Accounts Payable $ 44,600 Salaries and wages Payable $ 10,200 Notes payable $ 73,950 Total Current Liabilities Shareholder's Equity Common Stock $ 59,500 Retained Earnings $ 63,580 Total Shareholder's Equity Total Liabilities & Shareholder's Equity $154,730 $251,830 $128,750 $123,080 $251,830

CRANE DEPARTMENT STORE Income Statement November 30,2022 Amount Amount Sales Revenue $1,536,000 Less : Sales returns and allowances $ (34,000) $ 1,502,000 Less : Cost of Goods sold $(1,036,380) Gross Profit $ 465,620 Operating expenses Fright Out $ (10,830) Depreciation Expense $ (23,500) Advertaisement Expenses $ (56,950) Insurance Expense $ (15,300) Rent Expenses $ (57,800) Salries and wages Expenses $ (201,760) Utilities Expenses $ (17,300) Total Operating expenses $ (383,440) Income from Operations $ 82,180 Non-Operating or Other Gain on Disposal of Plant Assets $ 3,400 Interest Expense S (8,500) Total Non-opearting S (5,100) Income before Income Tax S 77,080 Income Tax expense S (17,000) Net Income $ 60,080

CRANE DEPARTMENT STORE Retained earnings Statement November 30,2022 Beginning balance Add : Current year Net income $ 23,900 $ 60,080 $ 83,980 $ (20,400) $ 63,580 Less : Dividend Ending Balance