Question

Emile Kokott, a former disc golf star, operates Emile’s Discorama, SA uses a periodic inventory system. At the beginning of the current season on November 1, the ledger of Emile’s Discorama showed Cash $21,850, Inventory $42,150, and Share Capital—Ordinary $44,000. At the end of fiscal year November 30, 2019, these accounts appeared in its adjusted trial balance.
Purchases                        $585,000
Purchase Discounts                    5,100
Purchase Returns and Allowances            2,900
Freight-In                       7,500
Sales Revenue                    1,200,000
Sales Returns and Allowances    28,500
Sales Discount                    16,500
Freight-out                        6,500
Salary expenses                   24,000
Rent expenses                   18,000
Supplies expenses                   7,000      
Interest expenses                   6,000
Additional facts:
1. Merchandise inventory on November 30, 2019, is $54,600.

Calculate Cost of Goods sold for November 30, 2019.
Prepare an income statement through gross profit for the year ended November 30, 2019

Answer 1