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Lambert Department Store is located in midtown Metropolis. During the past sever

ID: 2446970 • Letter: L

Question

Lambert 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 companys fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance.

Accounts Payable $ 26,800

Accounts Receivable 17,200

Accumulated DepreciationEquipment 68,000

Cash 8,000

Common Stock 35,000

Cost of Goods Sold 614,300

Freight-Out 6,200

Equipment 157,000

Depreciation Expense 13,500

Dividends 12,000

Gain on Disposal of Plant Assets 2,000

Income Tax Expense 10,000

Insurance Expense 9,000

Interest Expense 5,000

Inventory 26,200

Notes Payable 43,500

Prepaid Insurance 6,000

Advertising Expense 33,500

Rent Expense 34,000

Retained Earnings 14,200

Salaries and Wages Expense 117,000

Sales Revenue 904,000

Salaries and Wages Payable 6,000

Sales Returns and Allowances 20,000

Utilities Expense 10,600

Prepare Classified balance sheet?

Explanation / Answer

Assets Amount Amount Current Assets Cash     8,000.00 Accounts Receivable 17,200.00 Inventory 26,200.00 Prepaid Insurance     6,000.00 Total Current Assets      57,400.00 Plant,Propert and Equipment Equipment 157000 Less Accumulated Depreciation -68000 Net Block      89,000.00 Total Assets 1,46,400.00 Liability & Stock holders equity Current Liability Accounts Payable 26800 Notes Payable 43500      70,300.00 Stock Holders equity Common stock 35,000.00 Retained earnigs at the beginning 14,200.00 Additions during the year 26,900.00 Total Stock holders equity      76,100.00 Total Liability & Stock holders equity 1,46,400.00