?

Financial Accounting

Free Version

Upgrade subject to access all content

Moderate

Income Statement Gross Margin

FINACT-SNYEBG

Yellow Rose Transit Company provides the following adjusted trial balance information at year-end:

Account Titles Adjusted Trial Balance
Debits Credits
Cash \$45,500
Accounts Receivable 45,350
Inventory 25,600
Accounts Payable \$35,400
Unearned Revenue 10,000
Common Stock 10,000
Retained Earnings 35,630
Sales Revenue 182,000
Dividend Revenue 3,000
Salaries Expense 15,800
Purchases 108,000
Rent Expense 6,000
Depreciation Expense 14,500
Income Tax Expense 3,780
Interest Expense 11,500
Totals \$276,030 \$276,030


In addition, Yellow Rose Transit Company uses the periodic system to record Inventory and the beginning balance in the Inventory account is \$35,900 this year.

Using the multi-step Income Statement format, how much is Gross Margin for the year?

A

\$63,700

B

\$108,000

C

\$118,300

D

\$143,900