Assignment: P5-3A (A)

The Deluxe Store

Income Statement
For the year ended November 30, 2020
$ $
Sales Revenues
Sales Revenue 700,000
Less: Sales returns and allowances 8,000
Net Sales 692,000
Cost of Goods Sold 507,000
Gross Profit 185,000
Operating Expenses
Salaries and Wages Expense 96,000
Rent Expense 15,000
Sales commisions Expense 11,000
Depreciation Expense 11,000
Utilities Expense 8,500
Insurance Expense 7,000
Freight-out 6,500
Property tax Expense 2,500
Total Operating Expense 157,500
Income from Operations 27,500
Other revenues and gains
Interest Revenue 8,000
Other expenses and losses
Interest Expense 6,400 1,600
Net Income 29,100

The Deluxe Store

Retained Earnings Statement
For the year ended November 30, 2020
$
Retained Earnings, Dec 1 2019 61,700
Add Net Income 29,100
90,800
Less Dividends 10,000
Retained Earnings, Nov 30 2020 80,800
 The Deluxe Store
Balance Sheet
For the year ended November 30, 2020
ASSETS
$ $
Current Assets
Cash 26,000
Account Receivable 30,500
Inventory 29,000
Prepaid Insurance 3,500
Total Current Assets 89,000
Non-Current Assets
Property, Plant and Equipment 146,000
(Less Accum. Dep. - Equipment) 45,000 101,000

Total Assets 190,000

LIABILITIES AND STOCK HOLDERS' EQUITY

Liabilities
Current Liabilities
Accounts Payable 25,200
Sales commissions payable 4,500
Property Tax Payable 2,500
Total current liabilities 32,200
Long-term liabilities
Notes Payable 37,000
Total Liabilites 69,200
Stockholders' Equity
Common Stock 40,000
Retained Earnings 80,800
Total Liabilities and Stockholders' Equity 190,000