Reference no: EM133081670
Question - The following is an alphabetical listing of the accounts and their adjusted balances of Wallace Retailers as at their year-end date June 30, 2019. Assume the owner invested an additional $3,000 into the business during the year. This amount is included in the balance of the Capital account shown below.
|
Account Title
|
Debit
|
Credit
|
|
Accounts Payable
|
|
6,800
|
|
Accounts Receivable
|
6,700
|
|
|
Accumulated Depreciation
|
|
4,100
|
|
Bank Loan
|
|
21,000
|
|
Cash
|
17,200
|
|
|
Cost of Goods Sold
|
30,600
|
|
|
Depreciation Expense
|
300
|
|
|
Equipment
|
62,000
|
|
|
Gain on Sale
|
|
1,500
|
|
Insurance Expense
|
500
|
|
|
Interest Expense
|
150
|
|
|
Interest Revenue
|
|
420
|
|
Maintenance Expense
|
800
|
|
|
Prepaid Insurance
|
2,200
|
|
|
Rent Expense
|
8,500
|
|
|
Salaries Expense
|
6,700
|
|
|
Sales Discounts
|
400
|
|
|
Sales Returns and Allowances
|
700
|
|
|
Sales Revenue
|
|
68,000
|
|
Steve, Capital
|
|
36,430
|
|
Steve, Drawings
|
1,800
|
|
|
Telephone Expense
|
800
|
|
|
Unearned Revenue
|
|
1,100
|
|
Total
|
$139,350
|
$139,350
|
The bank loan is payable over 3 years and $7,000 will be paid by December 31, 2019.
Required - Use the Financial Statement templates to complete the question. Answer the following multiple-choice questions by selecting the correct answer from the dropdown boxes.
1) What is the amount of the net sales?
2) What is the amount of the gross profit?
3) What is the total amount of the operating expenses?
4) What account should be included in the other revenue and expenses?
5) What is the balance that would appear on the Statement of Owners Equity as the opening capital balance for Steve, Capital June 1, 2016?
6) What is the amount of the operating income?
7) What is the amount of the other revenue and expenses?
8) Using a single-step format, what would be the total revenue?
9) What are total current assets?
10) What are total current liabilities?