Question

First answer were incorrect. thanks for your help in advance.

Problem 5-03A al-a3, b-c The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2020, the following accounts appeared in two of its trial balances. Accounts Payable Accounts Receivable Accumulated Depr.--Equipment Cash Common Stock Cost of Goods Sold Dividends Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue Unadjusted $25,200 30,500 34,000 26,000 40,000 507,000 10,000 6,500 146,000 Adjusted $25,200 30,500 45,000 26,000 40,000 507,000 10,000 6,500 146,000 11,000 7,000 6,400 8,000 Inventory Notes payable Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue Utilities Expense Unadjusted Adjusted $29,000 $29,000 37,000 37,000 10,500 3,500 2,500 2,500 15,000 15,000 61,700 61,700 96,000 96,000 6,500 11,000 4,500 8,000 8,000 700,000 700,000 8,500 8,500 6,400 8,000

Answer 1

Income statement:

In place of Total revenue ,it should be "Revenue " or Sales revenue.

Total operating expense comes out to be = 157500 and so Income from operations comes out to be 185000-157500= 27500

Net income /(loss) 27500 +1600 = 29100

Retained earning :

RETAINED EARNING
Retained earning as on 1Dec 2019	61700
Add:Net income	29100
	90800
less:Dividend	(10000)
Retained earning as on 30Nov 2020	80800

c)

Date	Account title	Debit	credit
30 Nov	Depreciation expense	11000
	Accumulated depreciation-equipment		11000
30Nov	Insurance expense	7000
	Prepaid insurance		7000
30Nov	Property tax expense	2500
	Property taxes payable		2500
30 Nov	Sales commission expense	4500
	sales commission payable		4500

d)

Date	Account title	Debit	credit
30Nov	Sales revenue	700000
	Interest revenue	8000
	Income summary		708000
30 Nov	Income summary	678900
	sales return and allowance		8000
	cost of goods sold		507000
	Freight out		6500
	Depreciation expense		11000
	Insurance expense		7000
	property tax expense		2500
	rent expense		15000
	sales and wage expense		96000
	sales commission expense		11000
	utilities expense		8500
	Interest expense		6400
30 Nov	Income summary	29100
	Retained earning		29100
30 Nov	Retained earning	10000
	Dividend		10000