Chapter 5, Problem P5.47BPGB

Preparing a multi-step income statement and journalizing closing entries
Learning objective 8 Appendix 5B

1. Gross Profit $12,800

Taylor Department Store uses a periodic inventory statement. The adjusted trial balance of Taylor Department Store at December 31, 2018, follows.

TAYLOR DEPARTMENT STORE Adjusted Trial Balance December 31, 2018
	Balance
Account Title	Debit	Credit
Case	$7,900
Accounts Receivable	85,300
Merchandise Inventory (beginning)	37,600
Office Supplies	300
Furniture	83,000
Accumulated Depreciation-Furniture		$18,500
Accounts Payable		28,500
Salaries Payable		2,900
Unearned Revenue		14,500
Notes Payable, long-term		32,000
Taylor, Capital		65,400
Taylor, Withdrawals	89,000
Sales Revenue		380,800
Purchases	284,000
Purchases Returns and Allowances		110,000
Purchase Discounts		7,000
Freight In	100
Selling Expense	42,900
Administrative Expense	26,300
Interest Expense	3,200
Total	$659,600	$659,600