Problem 5-4A (Part Level Submission)

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 companys fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance.

Accounts Payable$ 34,304

Accounts Receivable22,016

Accumulated DepreciationEquipment87,040

Cash10,240

Common Stock44,800

Cost of Goods Sold786,304

Freight-Out7,936

Equipment200,960

Depreciation Expense17,280

Dividends15,360

Gain on Disposal of Plant Assets2,560

Income Tax Expense12,800

Insurance Expense11,520

Interest Expense6,400

Inventory33,536

Notes Payable55,680

Prepaid Insurance7,680

Advertising Expense42,880

Rent Expense43,520

Retained Earnings18,176

Salaries and Wages Expense149,760

Sales Revenue1,157,120

Salaries and Wages Payable7,680

Sales Returns and Allowances25,600

Utilities Expense13,568

Additional data: Notes payable are due in 2021.

(al) Prepare a multiple-step income statement. (List other revenues before other expenses.) WOLFORD DEPARTMENT STORE Income Statement >