Chapter 5, Problem P5B.40APGA

Preparing a multi-step income statement and journalizing closing entries

Learning Objective 8 Appendix 58

1. Gross profit $192,600

Triton Department Store uses a periodic inventory system. The adjusted trial balance of Triton Department Store at December 31, 2018, follows:

TRITON DEPARTMENT STORE Adjusted Trial Balance December 31, 2018
	Balance
Account Title	Debit	Credit
Cash	$ 8,200
Accounts Receivable	84,600
Merchandise Inventory (beginning)	37,800
Office Supplies	850
Furniture	86,000
Accumulated Depreciation-Furniture		$ 18,500
Accounts Payable		29,400
Salaries Payable		2,300
Unearned Revenue		14,900
Notes Payable, long-term		36,000
Triton, Capital		82,850
Triton, Withdrawals	88,600
Sales Revenue		374,000
Purchases	295,000
Purchase Returns and Allowances		109,000
Purchase Discount		6,400
Freight In	300
Selling Expense	41,700
Administrative Expense	26,600
Interest Expense	3,700
Total	$673,350	$673,350

Requirements

1. Prepare Triton Department Store’s multi-step income statement for the year ended December 31, 2018. Assume ending Merchandises Inventory is $36,300.
2. Journalize Triton Department Store’s closing entries.