Question

Prepare an Income Statement ABC Corporation
Adjusted Trial Balance
December 31, 2014
	Debit	Credit
Accounts Payable		$           65,340
Accounts Receivable	190,300
Accumulated Depreciation: Building		$             5,400
Accumulated Depreciation: Equipment		29,359
Accumulated Other Comprehensive Income		15,000
Additional Paid in Capital - Treasury Stock		21,000
Advertising Expense	8,400
Allowance for Doubtful Accounts		25,000
Bad Debt Expense	25,000
Bonds Interest Expense	43,088
Bonds Payable		1,600,000
Building	150,000
Cash	1,270,676
Common Stock		101,000
Depreciation Expense	33,759
Dividends	41,000
Employee Compensation Expense	10,000
Employee Stock Option Outstanding Account		10,000
Equipment	50,000
Fair value adjustment (Trading)	(8,000)
Income Taxes Expense	63,800
Income Taxes Payable		63,800
Insurance Expense	82,000
Interest Expense	1,175
Interest Income		19,561
Interest Receivable	16,000
Inventory	-
Investment in Bonds of Intuit Corp	200,000
Investment in Bonds of Intuit Corp - Discount		18,615
Land	75,000
Lease Equipment	43,796
Lease Liability		33,293
LT (Debt) Investments (HTM)	177,824
Notes Payable		236,175
Office Expense	21,700
Patent	37,500
Pension Expense	40,000
Pension-Related Asset	10,000
PIC in Excess of Par - Common Stock		33,000
Premium on Bonds Payable		118,630
Prepaid Insurance	17,400
Purchases	350,000
Rent Revenue		12,000
Retained Earnings		-
Sales Revenue		792,845
Short-term Investments	167,000
Treasury Stock	-
Unearned Rent Revenue		24,000
Unrealized Holding Gains and Losses	8,000
Utilities Expense	31,000
Wages Expense	80,350
Wages Payable		$           12,750
Total	$        3,236,768	$       3,236,768

Answer 1

ABC Corporation
Income Statement
For the year ended December 31, 2014
	$	$
Sales Revenue		792,845
Less: Operating Expenses
Wages Expense	80,350
Office Expense	21,700
Utilities Expense	31,000
Advertising Expense	8,400
Insurance Expense	82,000
Employee Compensation Expense	10,000
Bad Debt Expense	25,000
Pension Expense	40,000
Depreciation Expense	33,759
Total Operating Expenses		332,209
Income from Operations		460,636
Other Revenue / Expenses
Rent Revenue	12,000
Interest Income	19,561
Interest Expense	(44,263)	(12,702)
Income before Taxes		447,934
Income Tax Expense		63,800
Net Income		$ 384,134