The adjusted trial balance for China Tea Company at December

The adjusted trial balance for China Tea Company at December 31, 2018, is presented below: Debit Credit 10,800 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation equipment Accounts payable Notes payable due in three months Salaries payable Interest payable Common stock Retained earnings Sales revenue Costs of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense 153,000 5,300 28 00 128 00 330,000 128,000 33,000 33,000 4, 300 1,300 215,000 56,600 430,000 195,000 123,000 18,000 33,000 2,300 2,800 Totals 901,200 901,200

Solution

CHINA TEA COMPANY INCOME STATEMENT Particulars Amount Amount Sales Revenue $    4,30,000 Less : Expenses Cost of Goods Sold $     1,95,000 Salary Expenses $     1,23,000 Rent Expenses $         18,000 Depreciation Expenses $         33,000 Interest Expenses $           2,300 Advertising Expenses $           2,800 Total Expenses $    3,74,100 Net Income $        55,900