(SOLVED) Wolcott Warehouse Store has an August 31

fiscal year end

Wolcott Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory
system. An alphabetical list of its account balances at August 31, 2017, follows
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august-31-fiscal-year-end

Wolcott Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory
system. An alphabetical list of its account balances at August 31, 2017, follows. All accounts
have normal balances.

Additional information:

1. All adjustments have been recorded and posted except for the inventory adjustment.
According to the inventory count, the company has $54,700 of merchandise on hand.

2. Last year Wolcott Warehouse Store had a gross profit margin of 20% and a profit margin of
9%.

Instructions

(a) Prepare any additional required adjusting entries and update account balances.

(b) Prepare a single-step income statement.

(c) Calculate gross profit margin and profit margin. Compare with last year's margins and
comment on the results.

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 (d) Prepare the closing entries. Post to the Income Summary account. Before closing the
Income Summary account, check that the balance is equal to profit.

Wolcott Warehouse Store has an August 31 fiscal year end

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august-31-fiscal-year-end

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