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
On the Income Statement, what would the Gross Profit be for Lion Consulting?
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Lion Consulting |
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Adjusted |
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June 30, 2019 |
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Debit Balances |
Credit Balances |
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Cash |
92,000 |
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450,000 |
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Merchandise Inventory |
370,000 |
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Estimated Returns Inventory |
5,000 |
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Office Supplies |
10,000 |
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Prepaid Insurance |
12,000 |
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Office Equipment |
220,000 |
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58,000 |
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Store Equipment |
650,000 |
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Accumulated Depreciation - Store Equip. |
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87,500 |
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Accounts Payable |
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38,500 |
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Customer Refunds Payable |
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10,000 |
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Salaries Payable |
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4,000 |
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Note Payable (final payment due 2029)* |
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*140,000 |
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M.T. Lion, Capital |
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431,000 |
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M.T. Lion, Drawing |
300,000 |
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Sales |
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8,925,000 |
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Cost of Merchandise Sold |
5,620,000 |
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Sales Salary Expense |
850,000 |
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Advertising Expense |
420,000 |
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Depreciation Expense--Store Equipment |
33,000 |
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Miscellaneous Selling Expense |
18,000 |
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Office Salaries Expense |
540,000 |
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Rent Expense |
48,000 |
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Insurance Expense |
24,000 |
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Depreciation Expense--Office Equipment |
10,000 |
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Office Supplies Expense |
4,000 |
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Miscellaneous Administrative Expense |
6,000 |
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Interest Expense |
12,000 |
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Totals |
9,694,000 |
9,694,000 |
*Note: The current portion of the note payable is $7,000.
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