Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Based on this trial balance could you show me what I did wrong with the Income Statement as I messed up the Income before taxes
Based on this trial balance could you show me what I did wrong with the Income Statement as I messed up the Income before taxes and net income? I will have the picture shown below of my answer.
Cullumber 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, 2022, these accounts appeared in its adjusted trial balance. Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Common Stock Cost of Goods Sold Freight-Out Equipment Depreciation Expense Dividends Gain on Disposal of Plant Assets Income Tax Expense Insurance Expense Interest Expense Inventory Notes Payable Prepaid Insurance Advertising Expense Rent Expense Retained Earnings Salaries and Wages Expense Sales Revenue Salaries and Wages Payable Sales Returns and Allowances Utilities Expense $ 18,600 12,000 47,600 5,600 24,500 427,800 4,790 111,550 9,500 8,400 1,400 7.000 6,300 3,500 18,300 30,450 4,200 23,450 23,800 9,900 83,160 633,800 4,200 13,800 7,300 Additional data: Notes payable are due in 2026. Interest Expense Income Before Income Taxes Income Tax Expense Net Income /(Loss) $ 29000 7000 i $ 22000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started