Question

The Pina Colada Corp. 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, 2022, the following accounts appeared in tw of its trial balances. All accounts balances are normal. 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 $25,100 30,400 33.000 27,000 9,900 502,000 10,500 5,300 147,000 Adjusted $25,100 30,400 44,000 27.000 9.900 502,000 10,500 5,300 147.000 11,000 7,600 6,300 12.000 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 $28,500 $28,500 35,500 35,500 10.100 2.500 2,500 2.500 14,600 14,600 61,700 61,700 92,800 92.800 6,500 11,000 4,500 7.300 7.300 720,000 720,000 8.900 8.900 VUIHU 6,300 12,000 Den

Answer 1

Answer: 720000 -7300 712700 -502000 210700 The Pinacollada Corp. Income Statement For the year ended November 30,2022 Revenues: Sales revenue (Less): Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses: Freight-out 5300 Depreciation expense 11000 Insurance expense 7600 Property tax expense 2500 Rent expense 14600 Salaries and Wages expense 92800 Sales commissions expense 11000 Utilities expense 8900 Total operating expenses Operating income Non-Operating/Other revenues: Interest revenue 12000 Non-Operating/Other Expenses: Interest expense -6300 Net income 153700 57000 5700 62700