The following account information, in alphabetical order, was taken from the wor
ID: 2390758 • Letter: T
Question
The following account information, in alphabetical order, was taken from the work sheet of Compu-Soft for the month ended November 30, 2017. Adjusted Trial Balance Debit Credit Account 201 Accounts payable 106 Accounts receivable 186 Accumulated depreciation, store equipment 101 Cash 502 Cost of goods sold ?12 Depreciation expense, store equipment 301 Peter Delta, capital 302 Peter Delta, withdrawals 406 Rent revenue 413 Sales 415 Sales discounts 414 Sales returns and allowances 165 Store equipment 890 Utilities expense 823 Wages expense S 1,270 15,500 30,100 Totals $43,190 $43,190Explanation / Answer
Income statement :
Gross profit ratio = Gross profit *100/Sales
October = 15120*100/36000 = 42%
November = 13760*100/29260 = 47.03%
Sales revenue 30100 Less; Sales return and allowance -790 Less: Sales discount -50 Net Sales 29260 Less; Cost of goods sold -15500 Gross profit 13760 Less: Operating expense Depreciation expense -130 Utilities expense -2800 Wages expense -7000 Total operating expense -9930 Operating income 3830 Other revenue and expense Rent revenue 3200 Net income 7030