Use the flowing adjusted Trial Balance to answer questions 4

Use the flowing adjusted Trial Balance to answer questions 46-49 FASHION CENTRE LTD Adjusted Trial Balance November 30, 2015 Credit Debit S 22,000 30,600 25,000 950 1,200 37,000 26,800 Accounts receivable Merchandise inventory Prepaid insurance.. Equipment Accumulated depreciation-equipment.. Accounts payable .. Salaries payable Interest payable. Income tax payable . Unearned revenue S 16,080 34.400 1,210 175 1,100 600 35,000 16,400 25,000 Bank loan payable (matures 2018) Retained earnings. 10,000 Dividends Sales Interest revenue . 250,900 5,000 Sales returns and allowances . Cost of goods sold... Salaries expense Rent expense Depreciation expense. Supplies expense.. Insurance expense 4,520 4,600 159,500 33,810 13,850 5,360 700 600 4.175 2,100 3,100 Interest expense.. Advertising expense... Income tax expense.. Totals. $385.865 $ $385,865

Solution

46 Ans (d) Sales revenue Sales $250,900 Lets: Sales returns and allowances $4,600 Sales discounts          4,520 $9,120 Net sales $241,780 Cost of goods sold       159,500 Gross profit $82,280 47 Ans (a) Operating expenses Salaries expense $33,810 Rent expense            13,850 Depreciation expense              5,360 Advertising expense              2,100 Supplies expense                  700 Insurance expense                  600 Total Operating expense $56,420 Profit from operations              25,860 Other revenues and expenses Interest revenue              5,000 Interest expense              4,175 825 Profit before income tax              26,685 Income tax expense                 3,100 Profit $          23,585 48 Ans (d) Assets Current assets Cash $        22,000 Accounts receivable            30,600 Merchandise inventory            25,000 Supplies                  950 Prepaid insurance              1,200 Total current assets $          79,750 Long-term investments              37,000 property, plant, and equipment Equipment $        26,800 Less: Accumulated Depreciation            16,080 Total property, palnt, and equipment              10,720 Total assets $        127,470 49 Ans (b) Liabilities Current liabilities Accounts payable $        34,400 Salaries payable              1,210 Interest payable                  175 Income tax payable              1,100 Unearned revenue                  600 Total current liabilities            37,485 Non-current liabilities Bank loan payable            35,000 Total liabilities            72,485