Problem 5-4A (Part Level Submission) Wolford Department Store s located in midto
ID: 2432084 • Letter: P
Question
Problem 5-4A (Part Level Submission) Wolford Department Store s located in midtown Metropolis. During e past several years, ne ncome has been de n ng because su urban shopping centers ha e been a rac n business a sy on November 30, 2017, these accounts appeared in its adjusted trial balance. m o a ea·ALthe end or the compan fiscal year Accumulated Depreciation-Equipment Cost of Goods Sold Gain on Disposal of Plant Assets Salaries and Wages Payable Sales Returns and Allowances Additional data: Notes payable are due in 2021.Explanation / Answer
Wolford Departmental Store Multi Step Income Statement For the Year Ended November 30th 2017 Net Sales($1084800-$24000) $ 10,60,800.00 Cost of goods sold $ 7,37,160.00 Gross Profit $ 3,23,640.00 Operating Expenses Salaries & Wages $ 1,40,400.00 Rent Expense $ 40,800.00 Advertisement Expense $ 40,200.00 Depreciation Expense $ 16,200.00 Utilities Expense $ 12,720.00 Insurance Expenses $ 10,800.00 Freight Out $ 7,440.00 $ 2,68,560.00 Total Operting Expenses $ 55,080.00 Operating Income Non Operating & Others Gain or loss on sale of Plant Assets $ 2,400.00 Interest Expense $ (6,000.00) Net Income befor tax $ 51,480.00 Tax $ 12,000.00 Net Income after tax $ 39,480.00 Wolford Departmental Store Retained Earnings Statements For the Year Ended November 30th 2017 Beginning Retained Earnings $ 17,040.00 Add: Net Income $ 39,480.00 $ 56,520.00 Less: Dividend Paid $ -14,400.00 Ending Retained Earnings $ 42,120.00 Wolford Departmental Store Balance sheet As At November 30th,2017 Assets Current Assets: Cash $ 9,600.00 Accounts Receivable $ 20,640.00 Inventory $ 31,440.00 Prepaid Insurance $ 7,200.00 Total Current Assets $ 68,880.00 Propety,Plant & Equipment Equipment $ 1,88,400.00 Less: Accumulated Depreciation $ -81,600.00 Equipment(Net) $ 1,06,800.00 Total Assets $ 1,75,680.00 Liabilities & Stockholder's equity Current Liabilities Accounts Payable $ 32,160.00 Salaries & Wages Payable $ 7,200.00 Total Current Liabilities $ 39,360.00 Long Term liabilities Note Payable $ 52,200.00 Total Liabilitiess $ 91,560.00 Stockholder's Equity Common Stock $ 42,000.00 Retained Earnings $ 42,120.00 Total Stockholder's equity $ 84,120.00 Total Liabilities & Stockholder's Equity $ 1,75,680.00