Question

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 company’s fiscal year on November 30, 2017, these accounts appeared in its adjusted trial balance. Accounts Payable $ 34,840 Accounts Receivable 22,360 Accumulated Depreciation—Equipment 88,400 Cash 10,400 Common Stock 45,500 Cost of Goods Sold 798,590 Freight-Out 8,060 Equipment 204,100 Depreciation Expense 17,550 Dividends 15,600 Gain on Disposal of Plant Assets 2,600 Income Tax Expense 13,000 Insurance Expense 11,700 Interest Expense 6,500 Inventory 34,060 Notes Payable 56,550 Prepaid Insurance 7,800 Advertising Expense 43,550 Rent Expense 44,200 Retained Earnings 18,460 Salaries and Wages Expense 152,100 Sales Revenue 1,175,200 Salaries and Wages Payable 7,800 Sales Returns and Allowances 26,000 Utilities Expense 13,780 Additional data: Notes payable are due in 2021. (a1) Prepare a multiple-step income statement. (List other revenues before other expenses.) WOLFORD DEPARTMENT STORE Income Statement $ : $ $ Click if you would like to Show Work for this question: Open Show Work Show List of Accounts Link to Text Link to Text Attempts: 0 of 3 used Save for later Submit Answer (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

Wolford Department Store
Mutistep Income statement
	Amount $	Amount $
Sales		1,175,200
Less Sales Returns & Allowance		26,000
Net Sales		1,149,200
COGS		798,590
Gross Profit		350,610
Less
Operating Expenses
Advertising Expense	43,550
Freight Out	8,060
Depreciation Expense	17,550
Utilities Expense	13,780
Salaries & Wage Ex	152,100
Rent Expense	44,200
Insurance Expense	11,700
Total Operating Expense		290,940
Operating Income		59,670
Non-Operating
Gain on Disposal of Pl	2,600
Interest Expense	-6,500
Income Tax Expense	-13,000
Total Non-Operating		-16,900
Net Income		42,770