From the following data, prepare in proper form an income statement showing departmental gross profit (assume a

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From the following data, prepare in proper form an income statement showing departmental gross profit (assume a 18% tax rate) for Prompt Stop for the year ended December 31, 201X.

Cash

$13,500

Accounts Receivable

8,000

Allowance for Doubtful Accounts

1,700

Equipment

15,500

Accumulated Depreciation, Equipment

8,900

Accounts Payable

9,900

B.Smith, Capital

12,500

B.Smith, Withdrawals

2,600

Sales, Grocery

20,000

Sales, Pizza

22,000

Sales Returns and Allowances, Grocery

1,700

Sales Returns and Allowances, Pizza

2,800

COGS, Grocery

7,200

COGS, Pizza

10,600

Total Operating Expenses

5,000

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College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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