Hernandez Clothing Store employs the perpetual inventory system and prepares monthly financial statements. All accounts have been adjusted except for merchandise inventory. A physical count of merchandise inventory on November 30, 2014, indicates that $21,000 was on hand. A partial listing of account balances follows: Instructions
a. Prepare a partial income statement for the Hernandez Clothing Store for the month ended November 30, 2014. The income statement should show items through the gross profit category.
b. Calculate Hernandez's gross profit margin for November, 2014.

Question

Hernandez Clothing Store employs the perpetual inventory system and prepares monthly financial statements. All accounts have been adjusted except for merchandise inventory. A physical count of merchandise inventory on November 30, 2014, indicates that $21,000 was on hand. A partial listing of account balances follows:  Instructions 
a. Prepare a partial income statement for the Hernandez Clothing Store for the month ended November 30, 2014. The income statement should show items through the gross profit category.
b. Calculate Hernandez's gross profit margin for November, 2014.

Quizplus · Accepted Answer

The Answer of Hernandez Clothing Store employs the perpetual inventory system and prepares monthly financial statements. All accounts have been adjusted except for merchandise inventory. A physical count of merchandise inventory on November 30, 2014, indicates that $21,000 was on hand. A partial listing of account balances follows:  Instructions 
a. Prepare a partial income statement for the Hernandez Clothing Store for the month ended November 30, 2014. The income statement should show items through the gross profit category.
b. Calculate Hernandez's gross profit margin for November, 2014.

Hernandez Clothing Store Employs the Perpetual Inventory System and Prepares