Prepare an Income Statement for an Adjusted Trail Balance Th

Prepare an Income Statement for an Adjusted Trail Balance

The Century Company\'s adjusted trail balance contains the following balances as of December 31: Retained Earnings $8,500; Dividends $2,000, Sales $20,000; Cost of Good Sold $8,000; Selling and Administrative Expenes $3,000; Interest Expenes $1,5000; Prepare an income statment for the year.

Solution

Century Company Income Statement For the year Sales $ 20,000 Cost of goods sold         8,000 Gross Profit      12,000 Selling and administrative Expense         3,000 Profit Before Interest and Taxes         9,000 Interest Expense      15,000 Profit Before Taxes       -6,000