Adjusted Trial Balance of Big Papi Music Company - The...

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The adjusted trial balance of Big Papi Music Company at June 30, 2015, follows: .:. Requirements 1. Prepare Big Papi’s multi-step income statement for the year ended June 30, 2015. 2. Journalize Big Papi’s closing entries. 3. Prepare a post-closing trial balance as of June 30, 2015. SOLUTION: Requirement 1 BIG PAPI MUSIC COMPANY Income Statement Year Ended June 30, 2015 Sales Revenue $ 180,000
Less: Sales Returns and Allowances 3,000 Sales Discounts 2,000 Net Sales Revenue $ 175,000 Cost of Goods Sold 82,500 Gross Profit 92,500 Operating Expenses: Selling Expenses 19,200 Administrative Expenses 12,000 Total Operating Expenses 31,200 Operating Income 61,300 Other Revenues and (Expenses): Interest Expense (1,600) Total Other Revenues and (Expenses) (1,600) Net Income $ 59,700 Requirement 2 Date Accounts and Explanation Debit Credit Jun. 30 Sales Revenue

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