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PA11. LO 6.6 The following is the adjusted trial balance data for Emma's Alterations as of December 31, 2019. EMMA'S ALTERATIONS Adjusted Trial Balance Year Ended December 31, 2019 Debit Credit Cash $ 600,538 Accounts Receivable 50,689 199,430 Equipment Merchandise Inventory Accounts Payable 169,744 $ 234,893 Common Stock 502,200 Sales 393,426 100,976 Interest Revenue Rent Revenue 65,500 Sales Salaries Expense Office Supplies Expense Sales Discounts 26,750 4,903 61,347 3,570 Interest Expense Sales Returns and Allowances 55,432 90,333 10,400 8,560 3,421 11,878 $1,296,995 Cost of Goods Sold Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $1,296,995 A. Use the data provided to compute net sales for 2019. B. Compute the gross margin for 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth). D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.

PA11. LO 6.6 The following is the adjusted trial balance data for Emma's Alterations as of December 31, 2019. EMMA'S ALTERATIONS Adjusted Trial Balance Year Ended December 31, 2019 Debit Credit Cash $ 600,538 Accounts Receivable 50,689 199,430 Equipment Merchandise Inventory Accounts Payable 169,744 $ 234,893 Common Stock 502,200 Sales 393,426 100,976 Interest Revenue Rent Revenue 65,500 Sales Salaries Expense Office Supplies Expense Sales Discounts 26,750 4,903 61,347 3,570 Interest Expense Sales Returns and Allowances 55,432 90,333 10,400 8,560 3,421 11,878 $1,296,995 Cost of Goods Sold Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $1,296,995 A. Use the data provided to compute net sales for 2019. B. Compute the gross margin for 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth). D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PA11. LO 6.6 The following is the adjusted trial balance data for Emma's Alterations as of December 31, 2019. EMMA'S ALTERATIONS Adjusted Trial Balance Year Ended December 31, 2019 Debit Credit Cash $ 600,538 Accounts Receivable 50,689 Equipment Merchandise Inventory Accounts Payable Common Stock Sales 199,430 169,744 $ 234,893 502,200 393,426 100,976 65,500 Interest Revenue Rent Revenue Sales Salaries Expense Office Supplies Expense Sales Discounts 26,750 4,903 61,347 Interest Expense 3,570 55,432 Sales Returns and Allowances Cost of Goods Sold 90,333 Rent Expense 10,400 8,560 3,421 11,878 $1,296,995 Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $1,296,995 A. Use the data provided to compute net sales for 2019. B. Compute the gross margin for 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth). D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.
Transcribed Image Text:PA11. LO 6.6 The following is the adjusted trial balance data for Emma's Alterations as of December 31, 2019. EMMA'S ALTERATIONS Adjusted Trial Balance Year Ended December 31, 2019 Debit Credit Cash $ 600,538 Accounts Receivable 50,689 Equipment Merchandise Inventory Accounts Payable Common Stock Sales 199,430 169,744 $ 234,893 502,200 393,426 100,976 65,500 Interest Revenue Rent Revenue Sales Salaries Expense Office Supplies Expense Sales Discounts 26,750 4,903 61,347 Interest Expense 3,570 55,432 Sales Returns and Allowances Cost of Goods Sold 90,333 Rent Expense 10,400 8,560 3,421 11,878 $1,296,995 Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $1,296,995 A. Use the data provided to compute net sales for 2019. B. Compute the gross margin for 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth). D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.
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