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Financial Accounting P5-3A

 

 

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

 

In: Accounting

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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

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