Pamela Potter Theater Company uses a perpetual inventory sys

Pamela Potter Theater Company uses a perpetual inventory system. The adjusted trial balance of Pamela Potter Theater Company at June 30, 2018, follows: (Click the icon to view the adjusted trial balance.) Read the reguirements. Requirement 1. Prepare Pamela Potter\'s multi-step income statement for the year ended June 30, 2018. (Use a minus sign or parentheses to show other expenses.) Data Table Pamela Potter Theater Company Income Statement Year Ended June 30, 2018 Pamela Potter Theater Company Adjusted Trial Balance June 30, 2018 Balance Debit Credit Account Title $ 4,300 38,100 17,000 Merchandise Inventory Office Supplies 39,800 $ 8,500 13,100 Accounts Payable Salaries Payable Unearned Revenue Notes Payable, long-term Common Stock Retained Earnings 6,900 15,500 15,000 5,100 Net Income (Loss) Requirement 2. Journalize Pamela Potter\'s closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Do not close the expenses; this will be done in the next step. 43,000 189,000 Date Jun. 30 Clos. (1) Sales Revenue Cost of Goods Sold Selling Expense Accounts and Explanation DebitCredit 75,600 19,300 15,000 1,000 Interest Expense $ 253,900 $ 253,900

Solution

Answer 1. Pamela Potter Theater Company Income Statement Year Ended June 30, 2018 Sales Revenue Sales     189,000.00 Less: Cost of Goods Sold        75,600.00 Gross Profit     113,400.00 Opearting Expenses Selling Expenses      19,300.00 Administrative Expenses      15,000.00 Total Operating Expenses        34,300.00 Net Operating Income        79,100.00 Other Income & Expenses Interest Exp.        1,000.00 Total Other Income & Expenses          1,000.00 Net Income        78,100.00 Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 30-Jun Clos. (1) Sales Revenue    189,000.00 Income Summary    189,000.00 (Record to close revnues) Clos. (2) Income Summary    110,900.00 Cost of Goods Sold      75,600.00 Selling Expenses      19,300.00 Administrative Expenses      15,000.00 Interest Expenses        1,000.00 (Record the close of expenses) Clos. (3) Income Summary      78,100.00 Retained Earnings      78,100.00 (record to close the Income Summary) Clos. (4) Retained Earnings      43,000.00 Dividends      43,000.00 (record to close the Dividends) Answer 3. Pamela Potter Theater Company Post-Closing Trial Balance June 30, 2018 Particulars Dr. Amt. Cr. Amt. Cash        4,300.00 Accounts Receivable      38,100.00 Merchandise Inventory      17,000.00 Office Supplies            800.00 Furniture      39,800.00 Accumulated Depreciation - Furniture          8,500.00 Accounts Payable        13,100.00 Salaries Payable              800.00 Unearned Revenue          6,900.00 Notes Payable, Long term        15,500.00 Common Stock        15,000.00 Reatined Earnings        40,200.00 Total    100,000.00     100,000.00