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The trial balance of ABC Co. on December 31, 2021 shows the following information: Accounts Dr. Cr. Sales 900,000 Interest income 60,000 Gains 20,000 Inventory,
The trial balance of ABC Co. on December 31, 2021 shows the following information:
Accounts
Dr.
Cr.
Sales
900,000
Interest income
60,000
Gains
20,000
Inventory, beg.
50,000
Purchases
200,000
Freight-in
10,000
Purchase returns
5,000
Purchase discounts
7,000
Freight-out
25,000
Sales commission
30,000
Advertising expense
15,000
Salaries expense
300,000
Rent expense
30,000
Depreciation expense
40,000
Utilities expense
20,000
Supplies expense
10,000
Transportation and travel expense
5,000
Insurance expense
12,000
Taxes and licenses
70,000
Interest expense
2,000
Miscellaneous expense
1,000
Loss on the sale of equipment
15,000
Totals
835,000
992,000
Additional information:
Ending inventory is 80,000.
One-half of the salaries, rent, and depreciation expenses pertain to the sales department. The sales department does not share in the other expenses.
How much is the profit (loss)?
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