Question

Problem 5-4A (Part Level Submission) 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 November 30, 2017, these accounts appeared in its adjusted trial balance. Accounts Payable $ 38,056 Accounts Receivable 24,424 Accumulated Depreciation—Equipment 96,560 Cash 11,360 Common Stock 49,700 Cost of Goods Sold 872,306 Freight-Out 8,804 Equipment 222,940 Depreciation Expense 19,170 Dividends 17,040 Gain on Disposal of Plant Assets 2,840 Income Tax Expense 14,200 Insurance Expense 12,780 Interest Expense 7,100 Inventory 37,204 Notes Payable 61,770 Prepaid Insurance 8,520 Advertising Expense 47,570 Rent Expense 48,280 Retained Earnings 20,164 Salaries and Wages Expense 166,140 Sales Revenue 1,283,680 Salaries and Wages Payable 8,520 Sales Returns and Allowances 28,400 Utilities Expense 15,052 Additional data: Notes payable are due in 2021. Collapse question part (a1) Prepare a multiple-step income statement. (List other revenues before other expenses.) WOLFORD DEPARTMENT STORE Income Statement $ : $ $

Answer 1

Multiple-step income statement

Sales revenue	1,283,680
Sales Returns and Allowances	- 28,400
Net sales	1,255,280
Cost of goods sold	- 872,306
Gross profit	382,974
Operating expenses:
Freight out	- 8,804
Depreciation expense	- 19,170
Insurance expense	- 12,780
Advertising expense	- 47,570
Rent expense	- 48,280
Salaries and Wages Expense	- 166,140
Utilities Expense	- 15,052
Operating profit	65,178
Other revenues :
Gain on Disposal of Plant Assets	2,840
Other expenses :
Interest expense	- 7,100
Income before income tax	60,918
Income Tax Expense	- 14,200
Net income	$46,718

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