Starz Department Store is located near the Towne Shopping Mall. At the end of th

Question

Starz Department Store is located near the Towne Shopping Mall. At the end of the company%u2019s calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $ 79,300 $ 80,300 Interest Revenue 4,000 4,000 Accounts Receivable 50,300 50,300 Inventory 75,000 75,000 Accumulated Depr.%u2014Buildings 42,100 52,500 Mortgage Payable 80,000 80,000 Accumulated Depr.%u2014Equipment 29,600 42,900 Prepaid Insurance 9,600 2,400 Buildings 290,000 290,000 Property Tax Expense 4,800 Cash 23,800 23,800 Property Taxes Payable 4,800 Common Stock 112,000 112,000 Retained Earnings 64,600 64,600 Cost of Goods Sold 412,700 412,700 Salaries and Wages Expense 108,000 108,000 Depreciation Expense 23,700 Sales Revenue 724,000 724,000 Dividends 24,000 24,000 Sales Commissions Expense 10,200 14,500 Equipment 110,000 110,000 Sales Commissions Payable 4,300 Insurance Expense 7,200 Sales Returns and Allowances 8,000 8,000 Interest Expense 3,000 8,600 Utilities Expense 11,000 12,000 Interest Payable 5,600 Starz Department Store is located near the Towne Shopping Mall. At the end of the company%u2019s calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $ 79,300 $ 80,300 Interest Revenue 4,000 4,000 Accounts Receivable 50,300 50,300 Inventory 75,000 75,000 Accumulated Depr.%u2014Buildings 42,100 52,500 Mortgage Payable 80,000 80,000 Accumulated Depr.%u2014Equipment 29,600 42,900 Prepaid Insurance 9,600 2,400 Buildings 290,000 290,000 Property Tax Expense 4,800 Cash 23,800 23,800 Property Taxes Payable 4,800 Common Stock 112,000 112,000 Retained Earnings 64,600 64,600 Cost of Goods Sold 412,700 412,700 Salaries and Wages Expense 108,000 108,000 Depreciation Expense 23,700 Sales Revenue 724,000 724,000 Dividends 24,000 24,000 Sales Commissions Expense 10,200 14,500 Equipment 110,000 110,000 Sales Commissions Payable 4,300 Insurance Expense 7,200 Sales Returns and Allowances 8,000 8,000 Interest Expense 3,000 8,600 Utilities Expense 11,000 12,000 Interest Payable 5,600 Unadjusted Adjusted Unadjusted Adjusted STARZ DEPARTMENT STORE
Income Statement
For the Year Ended December 31, 2014 Open Show Work Modify Show Work Show List of Accounts Show List of Accounts Show List of Accounts Link to Text Link to Text Link to Text Link to Text Link to Text Link to Text Save for later Save for later Save for later Submit Answer Submit Answer Submit Answer Problem 5-3A (Part Level Submission) Starz Department Store is located near the Towne Shopping Mall. At the end of the company%u2019s calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $ 79,300 $ 80,300 Interest Revenue 4,000 4,000 Accounts Receivable 50,300 50,300 Inventory 75,000 75,000 Accumulated Depr.%u2014Buildings 42,100 52,500 Mortgage Payable 80,000 80,000 Accumulated Depr.%u2014Equipment 29,600 42,900 Prepaid Insurance 9,600 2,400 Buildings 290,000 290,000 Property Tax Expense 4,800 Cash 23,800 23,800 Property Taxes Payable 4,800 Common Stock 112,000 112,000 Retained Earnings 64,600 64,600 Cost of Goods Sold 412,700 412,700 Salaries and Wages Expense 108,000 108,000 Depreciation Expense 23,700 Sales Revenue 724,000 724,000 Dividends 24,000 24,000 Sales Commissions Expense 10,200 14,500 Equipment 110,000 110,000 Sales Commissions Payable 4,300 Insurance Expense 7,200 Sales Returns and Allowances 8,000 8,000 Interest Expense 3,000 8,600 Utilities Expense 11,000 12,000 Interest Payable 5,600

Explanation / Answer

Sales Revenue 628,000.00 Less : returns and Allowances (8,000.00) Net Sales 620,000.00 Less: Cost of Goods Sold (412,700.00) Gross Profit 207,300.00 less: Expenses Insurance Expense : Selling Expenses Insurance Expense :(60% of 7200) (4,320.00) Depreciation Expense- Equipment (13,300.00) Sales Salries (76,000.00) Sales Commission (14,500.00) Utilities (7,200.00) Administrative Expenses Insurance Expense :(40% of 7200) (2,880.00) Depreciation Expense-Building (10,400.00) Property TaxExpense (4,800.00) Utilities (4,800.00) Total Selling And Administrative Expenses (138,200.00) Other Expenses; Interest Expense (11,000.00) Net Income 58,100.00 Retained Earnings 60,000.00 Add: Net Income 58,100.00 Less:Dividends (28,000.00) Retained Earnings transferred to Stockholders' 90,100.00 Equity

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