On the Income Statement, what would the Gross Profit be for Lion Consulting?  Lion Consulting  Adjusted Trial Balance June 30, 2019    Debit Balances Credit Balances Cash 92,000   Accounts Receivable 450,000   Merchandise Inventory 370,000    Estimated Returns Inventory 5,000    Office Supplies 10,000   Prepaid Insurance  12,000    Office Equipment 220,000      Accumulated Depreciation - Office Equip.   58,000 Store Equipment 650,000       Accumulated Depreciation - Store Equip.   87,500  Accounts Payable   38,500 Customer Refunds Payable    10,000 Salaries Payable   4,000 Note Payable (final payment due 2029)*   *140,000 M.T. Lion, Capital   431,000 M.T. Lion, Drawing 300,000   Sales   8,925,000 Cost of Merchandise Sold    5,620,000   Sales Salary Expense 850,000   Advertising Expense 420,000   Depreciation Expense--Store Equipment 33,000   Miscellaneous Selling Expense 18,000    Office Salaries Expense  540,000    Rent Expense  48,000   Insurance Expense  24,000   Depreciation Expense--Office Equipment  10,000   Office Supplies Expense  4,000   Miscellaneous Administrative Expense  6,000    Interest Expense  12,000      Totals 9,694,000 9,694,000 *Note: The current portion of the note payable is $7,000. Use the Adjusted Trial Balance for Lion Consulting. On the Income Statement, what would the Income from Operations be for Lion Consulting? (Hint: NOT the Net Income.) Group of answer choices $1,340,000 $1,953,000 $8,925,000 $1,352,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On the Income Statement, what would the Gross Profit be for Lion Consulting? 

Lion Consulting 

Adjusted Trial Balance

June 30, 2019

 

 Debit

Balances

Credit

Balances

Cash

92,000

 

Accounts Receivable

450,000

 

Merchandise Inventory

370,000 

 

Estimated Returns Inventory

5,000 

 

Office Supplies

10,000

 

Prepaid Insurance 

12,000 

 

Office Equipment

220,000

 

   Accumulated Depreciation - Office Equip.

 

58,000

Store Equipment

650,000 

 

   Accumulated Depreciation - Store Equip.

 

87,500 

Accounts Payable

 

38,500

Customer Refunds Payable 

 

10,000

Salaries Payable

 

4,000

Note Payable (final payment due 2029)*

 

*140,000

M.T. Lion, Capital

 

431,000

M.T. Lion, Drawing

300,000

 

Sales

 

8,925,000

Cost of Merchandise Sold 

  5,620,000

 

Sales Salary Expense

850,000

 

Advertising Expense

420,000

 

Depreciation Expense--Store Equipment

33,000

 

Miscellaneous Selling Expense

18,000 

 

Office Salaries Expense 

540,000 

 

Rent Expense

 48,000

 

Insurance Expense 

24,000

 

Depreciation Expense--Office Equipment 

10,000

 

Office Supplies Expense 

4,000

 

Miscellaneous Administrative Expense

 6,000

  

Interest Expense 

12,000 

 

  Totals

9,694,000

9,694,000

*Note: The current portion of the note payable is $7,000.

Use the Adjusted Trial Balance for Lion Consulting. On the Income Statement, what would the Income from Operations be for Lion Consulting? (Hint: NOT the Net Income.)
Group of answer choices
$1,340,000
$1,953,000
$8,925,000
$1,352,000
 
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