An alphabetical list of Pharoahs Company adjusted accounts at its fiscal year end, August 31,...
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Accounting
An alphabetical list of Pharoahs Company adjusted accounts at its fiscal year end, August 31, 2021, follows. All accounts have normal balances.
Accounts payable
$15,560
Notes payable
$42,000
Accumulated depreciationequipment
14,000
Prepaid insurance
575
Accumulated depreciationfurniture
17,500
R. Smistad, capital
65,750
Cash
15,940
R. Smistad, drawings
79,000
Cost of goods sold
272,300
Rent expense
24,200
Depreciation expense
7,090
Salaries expense
50,000
Equipment
35,000
Salaries payable
2,250
Furniture
42,000
Sales
466,000
Insurance expense
3,575
Sales returns and allowances
16,300
Interest expense
2,180
Supplies
950
Interest payable
525
Supplies expense
6,325
Merchandise inventory
70,750
Unearned revenue
2,600
Additional information: 1. Of the notes payable, $6,800 becomes due on February 17, 2022. The balance is due in 2023. 2. On July 18, 2021, R. Smistad invested $4,000 cash in the business.
1.Calculate the gross profit margin and profit margin. (Round answers to 1 decimal place, e.g. 52.7%.)
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