EXERCISE
From the following trial balance, prepare a working balance sheet showing actual gross and net profits.
| TRIAL BALANCE | ||
|---|---|---|
| Bank | $8,460.00 | |
| Capital Stock | $25,000.00 | |
| Sales | 11,201.00 | |
| Purchases | 10,000.00 | |
| Returns and Allowances | 400.00 | |
| Interest and Discount earned | 260.00 | |
| General Expense | 425.00 | |
| Salaries | 360.00 | |
| Rent | 300.00 | |
| Taxes and Insurance | 37.60 | |
| Selling Expense | 421.00 | |
| Inventory (Jan. 1st) | 8,864.00 | |
| Fixtures | 2,500.00 | |
| Accounts Receivable | 5,680.00 | |
| Accounts Payable | 1,274.00 | |
| Cash in Office | 287.40 | |
| 37,735.00 | 37,735.00 | |
| Inventory (Feb 1) | 9,650.00 | |