Question

TRITON DEPARTMENT STORE Adjusted Trial Balance December 31, 2018 $ Account Title Cash Accounts Receivable Merchandise Inventory (beginning) Office Supplies Furniture Accumulated Depreciation Furniture Accounts Payable Salaries Payable Unearned Revenue Notes Payable, long-term Common Stock Retained Earnings Balance Debit Credit 8,200 84,600 37,800 850 86,000 $ 18,500 29,400 2,300 14,900 36,000 60,000 22,850 88,600 374,000 295,000 Dividends Sales Revenue Purchases Purchase Returns and Allowances Purchase Discounts Freight in Selling Expense Administrative Expense Interest Expense Total 109,000 6,400 300 41,700 26,600 3,700 S 673,350 5 673,350

Solev this problem by using periodic format

Answer 1

Multiple-step income statement for the year ended December 31, 2018:-
TRITON DPARTMENT STORE
Income Statement
For the Year Ended December 31, 2018
	Revenue
	Sales Revenue			$       374,000
	Cost of Goods sold
	Beginning merchandise inventory		$           37,800
Add:	Merchandise net purchases
	Merchandise purchases	$       295,000
	Add: Freight in	$             300
	Less: Puchases returns and allowances	$       109,000
	Less: Purchase Discounts	$          6,400
	Merchandise net purchases		$          179,900
	Goods available for sale		$          217,700
Less:	Ending merchandise inventory		$           36,300
	Cost of Goods sold			$       181,400
	Gross Profit (Loss)			$       192,600
	Operating Expenses
	Selling Expense		$           41,700
	Administrative Expense		$           26,600
	Total Operating Expenses			$        68,300
	Income from Operations			$      124,300
	Other Expenses and losses
	Interest Expense			$           3,700
	Income before Taxes			$          120,600

Closing Journal entries
Date	Particulars		Debit	Credit
Dec 31
1	Merchandise Inventory (ending)		$36,300
	Cost of Goods sold		$181,400
	Merchandise Inventory (beginning)			$37,800
	Puchases Account			$179,900
	(To record inventory and cost of goods sold)
2	Sales Revenue		$374,000
	Income Summary			$374,000
	(To close revenue account)
3	Income Summary		$253,400
	Cost of Goods sold			$181,400
	Selling Expense			$41,700
	Administrative expense			$26,600
	Interest Expense			$3,700
	(To close expense accounts)
4	Income Summary (374000-253400)		$120,600
	Retained Earnings			$120,600
	(To close income summary)

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