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The trial balance of Poorten Wholesale Centre contained the following accounts at

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The trial balance of Poorten Wholesale Centre contained the following accounts at November 30, the company's fiscal year end;POORTEN WHOLESALE CENTRE;Trial Balance;November 30, 2008;Debit Credit;Cash $ 12,700;Accounts receivable 15,700;Merchandise inventory 45,200;Supplies 1,900;Notes receivable 25,000;Land 60,000;Building 85,000;Accumulated amortization-building $ 17,600;Delivery equipment 48,000;Accumulated amortization-delivery equipment 24,000;Accounts payable 48,500;Unearned sales revenue 3,000;Mortgage payable 51,000;K. Poorten, capital 132,000;K. Poorten, drawings 12,000;Sales 751,300;Interest revenue 2,020;Sales returns and allowances 4,200;Sales discounts 3,750;Cost of goods sold 498,100;Advertising expense 26,400;Amortization expense 10,125;Freight out 16,700;Insurance expense 3,420;Interest expense 3,700;Salaries expense 137,025;Supplies expense 6,500;Utilities expense 14,000;$1,029,420 $1,029,420;Other data;1. All adjustments have been recorded and posted except for the inventory adjustment. Merchandise inventory actually on hand at November 30, 2008, is $42,600.;2. Last year, Poorten Wholesale had a gross profit margin of 35% and a profit margin of 5%.;Instructions;Prepare the adjusting entry.;Date Account Titles and Explanations Debit Credit;Nov. 30;Prepare a multiple-step income statement. Report the following selected amounts from your completed income statement;Net sales $;Gross profit;Total operating expenses;Net income $;Prepare a single-step income statement. Report the following selected amounts from your completed income statement;Total revenues $;Total operating expenses;Net income $;Compare the two income statements and comment on the usefulness of each one.;Calculate the gross profit margin and profit margin for 2008. Round to one decimal place.;2008;Gross profit margin %;Profit margin %;Prepare the closing entries. Post to the Income Summary account. Check that the balance in Income Summary before closing it is equal to net income.;Nov. 30;Nov. 30;Attachment Preview;file2.txt Download Attachment;The trial balance of Poorten Wholesale Centre contained the following accounts at November 30, the company's fiscal year end;POORTEN WHOLESALE CENTRE;Trial Balance;November 30, 2008;Debit... Show more

 

Paper#24860 | Written in 18-Jul-2015

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