Problem
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
|
$ 38,592
|
|
Accounts Receivable
|
24,768
|
|
Accumulated Depreciation-Equipment
|
97,920
|
|
Cash
|
11,520
|
|
Common Stock
|
50,400
|
|
Cost of Goods Sold
|
884,592
|
|
Freight-Out
|
8,928
|
|
Equipment
|
226,080
|
|
Depreciation Expense
|
19,440
|
|
Dividends
|
17,280
|
|
Gain on Disposal of Plant Assets
|
2,880
|
|
Income Tax Expense
|
14,400
|
|
Insurance Expense
|
12,960
|
|
Interest Expense
|
7,200
|
|
Inventory
|
37,728
|
|
Notes Payable
|
62,640
|
|
Prepaid Insurance
|
8,640
|
|
Advertising Expense
|
48,240
|
|
Rent Expense
|
48,960
|
|
Retained Earnings
|
20,448
|
|
Salaries and Wages Expense
|
168,480
|
|
Sales Revenue
|
1,301,760
|
|
Salaries and Wages Payable
|
8,640
|
|
Sales Returns and Allowances
|
28,800
|
|
Utilities Expense
|
15,264
|
Prepare a multiple-step income statement. (List other revenues before other expenses.)