Question

Camilia Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2018:
Cash $2,900
Selling 1,400
Expenses 4,300
Accounts Payable 4,365
Common Stock
Notes Payable, long-term 500
Merchandise Inventory 1,100
Administrative Expenses 3,300
Cost of Goods Sold 18,700
Equipment, net 9,500
Accrued Liabilities 1,800
Net Sales 29,200
Revenue 65 500
Accounts Receivable 3,200
Interest Expense 65
Preparing a merchandiser's income statement
Prepare Camilia Communication's multi-step income statement for the year ended July 31, 2018.
Requirements
1. Journalize the required closing entries for Rocky.
2. Determine the ending balance in the Retained Earnings account

Answer 1

Answer: The answer is provided below

Explanation:

The solution to the question has been properly analysed and the journal and net income has been provided.

It should be noted that in the calculations, the expenses were deducted from the revenue in order to get the net income. The gross profit was gotten by deducting the cost of goods sold from the sales revenue which was: ($29,200 - $18,700) = $10,500.

Other necessary information have been attached.