Question

 

 

The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2015, the following accounts appeared in two of its trial balances

 

Answer 1

The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers.

 

The deluxe store
	Income statement
	For the year ended Nov 2015
	Particulars	Amount	Amount
	Revenues
	Sales Revenue		700000
	Less: Sales returns And allowances		-8000
	Net Sales		692000
	Less: Cost of goods sold		-507000
			185000
	Operating expenses
	Freight out	6500
	Depreciation expense	11000
	Insurance expense	7000
	Property tax expense	2500
	Rent Expense	15000
	Salaries and wages expense	96000
	Sales commission expense	11000
	Utilities expense	8500	157500
	Income from operations		27500
	Other revenues and gains
	Interest Revenue	8000
	Other expenses and losses
	Interest expense	6400	1600
	Net income		29100
	The deluxe store
	Owner's equity statement
	For the year ended Nov 2015
	Common stock		40000
	Retained earninngs in the begginning	61

 

The deluxe store
	Income statement
	For the year ended Nov 2015
	Particulars	Amount	Amount
	Revenues
	Sales Revenue		700000
	Less: Sales returns And allowances		-8000
	Net Sales		692000
	Less: Cost of goods sold		-507000
			185000
	Operating expenses
	Freight out	6500
	Depreciation expense	11000
	Insurance expense	7000
	Property tax expense	2500
	Rent Expense	15000
	Salaries and wages expense	96000
	Sales commission expense	11000
	Utilities expense	8500	157500
	Income from operations		27500
	Other revenues and gains
	Interest Revenue	8000
	Other expenses and losses
	Interest expense	6400	1600
	Net income		29100
	The deluxe store
	Owner's equity statement
	For the year ended Nov 2015
	Common stock		40000
	Retained earninngs in the begginning	61