Question

P6-10 Wolford 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 company's fiscal year on Novem- ber 30, 2017, its accounting records included the following accounts and adjusted balances. Accounts Payable $ 26,800 Accounts Receivable 17,200 Accumulated Depreciation Equipment 68,000 Advertising Expense 33,500 Cash 8,000 Common Stock 35,000 Cost of Goods Sold 614,300 Freight-Out 6,200 Equipment 157,000 Depreciation Expense 13,500 Dividends 12,000 Gain on Disposal of Plant Assets 2,000 Income Tax Expense 10,000 Insurance Expense 9,000 Interest Expense 5,000 Inventory 26,200 Notes Payable 43,500 Prepaid Insurance 6,000 Rent Expense 34,000 Retained Earnings 14,200 Salaries and Wages Expense 117,000 Salaries and Wages Payable 6,000 Sales Returns and Allowances 20,000 Sales Revenue 904,000 Utilities Expense 10,600 Additional data: Notes payable are due in 2021. Instructions (a) Prepare a multiple-step income statement, a retained earnings statement, and a clas- sified balance sheet.

Answer 1

Answers @paponte a meat-tiple - step income statement, a refainod Caminge s-to-kment, and a classified balance sheet ; Amount:c | Amount($). 904,000 (20,000) 884,000 (614,300) 269400 6200 Particulars sales Revenue. seules return and allowance Net sales cost of goods sold Gross margin les:operceting expense freight out Depreciation Ezpence Insurance expense Advertising Expense Rent expense salaries and wringes Expense . letilities expense Total operating expense operating income 13500 9000 33500 34,000 117,000 10600 @a3 800) 45900

2000 (5000) Other incom | Cempence) Gainon sale of plant interest Expense Net other income |Cexpense) income before income-lax Em come tax Expense (3000) 42900 (10000) 32900 Net income Statement of Retained Earnings Beginning Relained earnings 14200 32900 net income Dividend -Re-lained Earning at End (12,000) 35,100 Balance sheet Amour |C7 Amount particulars Aset: Current asset: cash Account receivable inventory 8,000 17200 26200

6,000 Prepaid insurance Total current assets - 57400 Non Current asset t Equipment 157,000 (66,000) 89,000 146420 26800 6000 Accumulerted deprecicortion Tolal Asset liabilities and equity : Current liabilities: Accounts payable Salavice and woges pouble Non current liabilities: Note pagable Total liabilities equity common stock Reteined earnings Total Equity Toled liabilities and squiety. 43500 76300 35,000 - 35,100 70,100 146400