Question

P5-36A (book/static) Question Help Rachael Rey's Music Company uses a perpetual inventory system. The adjusted trial balance of Rachael Rey's Music Company at June 30, 2018, follows: (Click the icon to view the adjusted trial balance.) Read the requirements Requirement 1. Prepare Rachael Rey's mult-step income statement for the year ended June 30, 2018. (Use a minus sign or parentheses to show other expenses.) Rachael Rey's Music Company Income Statement Year Ended June 30, 2018 Choose from any list or enter any number in the input fields and then click Check Answer 5 5 parts remaining Clear All Check Answer

Answer 1

Income Statement
Sales Revenue				$ 184,000.00
Cost of Goods sold				$   85,500.00
Gross Margin				$   98,500.00
Operating Expenses
Administrative expenses			$ 12,000.00
Selling Expenses			$ 18,600.00
Total operating expenses				$   30,600.00
Operating income				$   67,900.00
Non-Operating expense
Interest Expense				$     1,900.00
Net Income				$   66,000.00

Closing Entries
Particulars			Debit	Credit
Sales Revenue			$ 184,000.00
To Income Statement				$ 184,000.00
Income Statement			$ 118,000.00
To Cost of Goods sold				$   85,500.00
To Administrative expenses				$   12,000.00
To Selling expenses				$   18,600.00
To Interest expenses				$     1,900.00
Income Statement			$   66,000.00
To Retained Earnings				$   66,000.00
Retained Earnings			$   40,000.00
Dividends				$   40,000.00

Post Closing Trial Balance
Particulars			Debit	Credit
Cash			$     4,000.00
Accounts Receivable			$   38,400.00
Merchandise Inventory			$   18,100.00
Office Supplies			$        300.00
Furniture			$   39,900.00
Accumulated Depreciation				$     8,200.00
Accounts Payable				$   13,800.00
Salaries Payable				$        850.00
Unearned Revenue				$     7,500.00
Notes Payable				$   17,000.00
Common Stock				$     6,000.00
Retained Earnings				$   47,350.00
Total			$100,700.00	$100,700.00