Question

The trial balance of Crane Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.

CRANE FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2020
		Debit			Credit
Cash		$32,700
Accounts Receivable		36,700
Inventory		48,000
Supplies		8,500
Equipment		139,000
Accumulated Depreciation-Equipment					$26,000
Notes Payable					54,000
Accounts Payable					51,500
Common Stock					93,000
Retained Earnings					11,000
Sales Revenue					764,200
Sales Returns and Allowances		4,200
Cost of Goods Sold		495,400
Salaries and Wages Expense		139,000
Advertising Expense		27,400
Utilities Expenses		15,000
Maintenance and Repairs Expense		12,100
Delivery Expense		16,700
Rent Expense		25,000
Totals		$999,700			$999,700

Adjustment data:

1.		Supplies on hand totaled $4,500.
2.		Depreciation is $16,500 on the equipment.
3.		Interest of $10,100 is accrued on notes payable at November 30.

Other data:

1.		Salaries expense is 70% selling and 30% administrative.
2.		Rent expense and utilities expenses are 80% selling and 20% administrative.
3.		$30,000 of notes payable are due for payment next year.
4.		Maintenance and repairs expense is 100% administrative.

(c1) Prepare a multiple-step income statement for the year. (ignore income taxes) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) CRANE FASHION CENTER Income Statement Selling expenses $

Answer 1

$764,200 $ 4,200 $760,000 $495,400 $264,600 CRANE FASHION CENTER Income Statement For the Year Ended November 30, 2020 Sales Revenue Sales Less: Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Advertising Expense $ 27,400 Salaries and Wages Expense $ 97,300 Utilities Expense $ 12,000 Rent Expense $ 20,000 Delivery Expense $ 16,700 Depreciation Expense $ 16,500 Supplies Expense $ 4,000 Total Selling Expenses $ 193,900 Administartive expenses Maintenance and Repairs Expense $ 12,100 Salaries and Wages Expense $ 41,700 Rent Expense $ 5,000 Utilities Expense $ 3,000 Total Administrative Expenses $ 61,800 Total Operating Expenses Income from Operations $ 255,700 $ 8,900

Other Expenses and Losses Interest Expense Net Income /(Loss) $ 10,100 $ (1,200) CRANE FASHION CENTER Retained Earnings Statement For the Year Ended November 30,2020 Retained earnings , December 1, 2019 $ 11,000 Less: Net Loss $ 1,200 Retained earnings, November 30, 2020 $ 9,800 CRANE FASHION CENTER Balance Sheet November 30,2020 Assets Current Assets Cash $ 32,700 Accounts Receivables $ 36,700 Inventory $ 48,000 Supplies $ 4,500 Total Current assets $ 121,900 Property, Plant and Equipment Equipment $ 139,000 Accumulated Depreciation - Equipment $ 42,500$ 96,500 Total assets $218,400 Liabilities and Stockholders' Equity

$ 51,500 $ 10,100 $ 30,000 $ 91,600 Current Liabilities Accounts Payable Interest Payable Notes payable due in next year Total Current Liabilities Long-term liabilities Notes payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 24,000 $115,600 $ 93,000 $ 9,800 $102,800 $218,400 Working Notes: Salaries and Wages Expenses Selling Expenses = $139,000*70% = $97,300 Administrative Expense = $139,000*30%= $41,700 Rent Expense Selling expense = $25,000*80% = 20,000 Administrative Expense = $25,000*20%= $5,000 Utilities Expense Selling Expense = $15,000*80%= $12,000 Administrative Expense = $15,000*20%= $3,000 Supplies Expense = $8,500-$4,500 = $4,000 Notes payable - long term liabilities = $54,000-$30,000 = $24,000