HARRY\'S HABERDASHERY ADJUSTED TRIAL BALANCE DECEMBER 31,20X5 Cash Accounts Rece

Question

HARRY'S HABERDASHERY ADJUSTED TRIAL BALANCE DECEMBER 31,20X5 Cash Accounts Receivable Merchandise inventory Prepaid rent Office supplies Office equipment Accumulated depreciation: office equipment Accounts payable Sales tax payable Capital stock Retained earnings Sales Revenue Sales returns and allowances Cost of goods sold Utilities expense Office supply expense Depreciation expense: office equipment Rent expense Insurance expense Salaries expense Income tax expense $19,635 31,300 14,850 1,050 750 35,000 10,000 12,000 2,950 15,500 18,650 190,000 2,000 76,815 4,700 950 2,350 5,000 750 47,000 6,950 249,100 249,100

Explanation / Answer

Income statement

Gross profit percentage = 111185*100/188000 = 59.14%

Sales 190000 Less: Sales return and allowance (2000) Net sales 188000 Less : cost of goods sold (76815) Gross profit 111185 Operating expense Utilities expense (4700) Office supplies expense (950) Depreciation-office equipment (2350) Insurance expense (750) Rent expense (5000) Salary expense (47000) Total operating expense (60750) Income from operation 50435 Less :Income tax (6950) Net income 43485

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