Need help thanks again Homemade Hams Inc Adjusted Trial Bala

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Homemade Hams, Inc.

Adjusted Trial Balance

December 31, 2016

(Amounts in thousands)

Account

Debit

Credit

Cash

$3,900

Accounts receivable

1,400

Inventories

2,300

Prepaid expenses

1,900

Property, plant, and equipment

16,900

Accumulated depreciation-property, plant, and equipment

$2,800

Other assets

9,600

Accounts payable

7,600

Income tax payable

500

Other liabilities

2,600

Common stock

14,500

Retained earnings (beginning, December 31, 2015)

5,900

Dividends

1,600

Sales revenue

42,000

Cost of goods sold

25,500

Selling, administrative, and general expenses

10,300

Income tax expense

2,500

Total

$75,900

$75,900

Statement of Retained Earnings Year Ended December 31, 2016 Thousands Retained earnings, December 31, 2015 Add: Net income Subtotal Less: Dividends Retained earnings, December 31, 2016

Solution

Net income = Sales - Cost of goods sold - Selling , admin expenses - Income tax expense

= 42000 - 25500 - 10300 - 2500 = 3700

Retained earnings December 31 2016 = Retained earnings December 31 2015 + Net income - Dividends

= 5900 + 3700 - 1600 = 8000