Refer to the Following Trial Balance How Much Is the Gross Profit?
A)$169,000
B)$180,000
C)$282,000
D)$89,000

question 148

Multiple Choice

Refer to the following trial balance. $$\begin{array} { | l | r | r | } \hline & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 4,000 & \\\hline \text { Accounts Receivable } & 14,000 & \\\hline \text { Inventory } & 16,000 & \\\hline \text { Supplies } & 5,000 & \\\hline \text { Land } & 100,000 & \\\hline \text { Accounts Payable } & & \$ 6,000 \\\hline \text { Notes Payable } & & 25,000 \\\hline \text { Common Stock } & & 61,000 \\\hline \text { Retained Earnings } & & 10,000 \\\hline \text { Dividends } & 2,000 & \\ \hline \text { Sales Revenue } & &180,000 \\\hline \text { Sales Returns and Allowances } &5,000& \\\hline \text { Sales Discounts } & 6,000 & \\\hline \text { Cost of Goods Sold } &80,000 & \\\hline \text { Salaries Expense } &5,000 & \\\hline \text { Utilities Expense } &24,000 & \\\hline \text { Rent Expense } & 18,000 \\\hline \text { Interest Expense }& \underline { 3,000 } \\\hline \text { Totals } & \$ 282,000 & { \$ 282,000 } \\\hline\end{array}$$ How much is the gross profit?

• A)$169,000
• B)$180,000
• C)$282,000
• D)$89,000

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Definitions:

Writing

A type of documentation that shows contractual intent and satisfies the statute of frauds requirement.

States Require

A phrase indicating that individual U.S. states may have specific legal requirements or regulations that must be followed.

Merchantability

A warranty implied by law that goods sold are fit for the ordinary purpose for which such goods are used.

Webster v. Blue Ship Tea Room, Inc.

A legal case from Massachusetts in 1964 that centered around what constituted a "fish chowder," illustrating how courts interpret contractual obligations and representations in business.