Question

Prepare the income statement for this Information.

ABC Corporation
Adjusted Trial Balance
December 31, 2016
	Debit	Credit
Cash	$        1,597,218
Accounts receivable	442,120
Allowance for doubtful accounts		75,000
Inventory	70,000
Allowance to Reduce Inventory to NRV		16,000
Purchases	-
Prepaid insurance	4,500
Land	88,000
Building	37,500
Accumulated depreciation: building		1,265
Equipment	21,600
Accumulated depreciation: equipment		9,900
Patent	50,000
Accounts payable		88,851
Notes payable		40,000
Income taxes payable		99,000
Interest Payable		300
Unearned rent revenue		9,000
Bonds Payable		1,410,000
Premium on Bonds Payable		108,819
Wages Payable		4,000
Common stock		125,000
PIC In Excess of Par-Common Stock		130,000
Retained earnings		-
Treasury stock	10,000
Dividends	28,000
Sales Revenue		790,000
Rent Revenue		4,500
Advertising expense	9,240
Wages expense	66,150
Office expense	28,500
Depreciation expense	11,165
Utilities expense	33,571
Interest Expense	300
Bond Interest Expense	30,271
Insurance expense	22,500
Loss expense due to reduction	16,000
Income taxes expense	99,000
Bad Debt Expense	75,000
Cost od Goods Sold	177,000
Paid in Capital Treasury Stock		6,000
	2,917,635	2,917,635

Answer 1

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