You have been provided with the following selected accounts for Feisty Ltd. for the year ended April 30, 2015:

Feisty conducted a physical inventory count on April 30, 2015. Inventory on hand at that date was determined to be $700,000.
Instructions
(a) Prepare a partial multiple-step income statement for the year ended April 30, 2015, through to gross profit.
(b) Prepare the period-end adjusting journal entry to update the Cost of Goods Sold and Merchandise Inventory accounts.
(c) Calculate the gross profit margin. If the industry average gross profit margin is 30%, how does Feisty's gross profit margin compare?

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600,000 Interest expense Inventory, May 1, 2014 Purchases Accounts receivable Sales Purchase discounts Freight in Land Sales returns and allowances 30,000 20,000 600,000 810,000 150,000 160,000 200,000 5,900,000 Interest income 780,000 Accounts payable 9,300,000 Administrative expenses 40,000 Selling expenses 120,000 Cash 900,000 Common shares 250,000