Question

1 Noodles Unlimited, Inc. sells swimming pool toys. The following adjusted trial balance 2 is for the year ended December 31, 20X1. Credits Debits $37,500 28,600 43,300 2,000 69,000 4 Account Titles 5 Cash Accounts Receivable 7 Inventory Prepaid Rent Equipment 10 Accumulated Depreciation Accounts Payable 12 Unearned Fees Long-term Notes Payable 14 J. Noodle, Capital Sales Revenue 16 Sales Returns and Allowances 17 Sales Discounts 18 Cost of Goods Sold 19 Salaries and Wages Expense Depreciation Expense Rent Expense Interest Expense Loss on Sale of Equipment 24 Totals 1 ... $20,700 8,800 20,000 75,000 31,800 175,500 20 4,700 6,000 67,700 25,900 13,800 24,000 1,600 7,700 $331.8001 23 $331.800

Answer 1

NOODLES UNLIMITED Income Statement For the Year Ended December 31,20X1 Sales Revenue $ 175,500 Less : Sales returns and allowances S (4,700) Less : Sales Discounts $ (6,000) Net Sales S 164,800 Less : Cost of Goods sold $ (67,700) Gross Profit $ 97,100 Operating expenses Salries and wages Expense S (25,900) Depreciation Expense S (13,800) Rent Expense S (24,000) Total Operating expenses S (63,700) Other expenses and losses $ 33,400 Loss on sale of equipment S (7,700 Interest Expense S (1,600) Total other expenses and losses S (9,300) Net Income S 24,100

Gross Profit Percentage 58.92% Gross Profit Percentage = Gross Profit/Net Sales * 100 = S 97100 / S 164800 *100 58.92%