Question
I'm having some trouble preparing an income statement using the following data. Wolford Department Store is located in midtown Metropolis. During the past several years,
I'm having some trouble preparing an income statement using the following data.
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$28,408
Accounts Receivable 18,232
Accumulated DepreciationEquipment 72,080
Cash 8,480
Common Stock 37,100
Cost of Goods Sold 651,158
Freight-Out 6,572
Equipment 166,420
Depreciation Expense 14,310
Dividends 12,720
Gain on Disposal of Plant Assets 2,120
income Tax Expense 10,600
Insurance Expense 9,540
Interest Expense 5,300
Inventory 27,772
Notes Payable 46,110
Prepaid Insurance 6,360
Advertising Expense 35,510
Rent Expense 36,040
Retained Earnings 15,052
Salaries and Wages Expense 124,020
Sales Revenue 958,240
Salaries and Wages Payable 6,360
Sales Returns and Allowances 21,200
Utilities Expense 11,236
Additional Data: Notes payable are due in 2021.
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