The Post-Closing Trial Balance of the Falisari Import Company at March

question 61

Essay

The post-closing trial balance of the Falisari Import Company at March 31 is as follows.
$\begin{array}{ll}&{\text { Debit }} & \text { Credit } \\\text { Cash } & \$ 321,000 \\\text { Accounts Receivable } & 201,000 \\\text { Inventory } & 504,000 \\\text { Building and Equipment } & 1,560,000\\\text { Accumulated Depreciation } && \$ 240,000 \\\text { Accounts Payable } && 246,000 \\\text { Salaries Payable } && 45,000 \\\text { Common Stock } && 1,410,000 \\\text { Retained Earnings } && 645,000\\&\$2,586,000&\$2,586,000\end{array}$ Transactions during April and additional information follow.
$\begin{array}{lll}\text { 1. } & \text { Sales on account } & \$ 300,000 \\\text { 2. } & \text { Cash sales } & 195,000 \\\text { 3. } & \text { Cash collected on accounts receivable } & 240,000 \\\text { 4. } & \text { Salaries paid in cash } & 150,000 \\\text { 5. } & \text { Salaries eamed on April 29 and 30, but not yet paid } & 15,000 \\\text { 6. } & \text { Miscellaneous expenses paid in cash } & 30,000 \\\text { 7. } & \text { Merchandise purchased on account } & 330,000 \\\text { 8. } & \text { Accounts payable paid in cash } & 270,000 \\\text { 9. } & \text { Merchandise inventory, April 30 } & 540,000 \\\text { 10. } & \text { Depreciation expense in April } & 9,000\end{array}$
Required:
Prepare an income statement for the month of April and a post-closing trial balance at April 30.

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Definitions:

Optimal Choice

The most efficient, advantageous selection or decision based on available information and constraints.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute the consumption of one good for another.

Interest Rate

The remuneration, depicted as a fraction of the principal, that a lender exacts from a borrower for asset utilization.

Income Effect

A change in the consumption patterns of individuals or economies due to a change in real income or purchasing power.