Homework SoursePrepare the income statement ABC Corporation Adjusted Trial
Prepare the income statement
| ABC Corporation | ||
| Adjusted Trial Balance | ||
| December 31, 2014 | ||
| Debit | Credit | |
| Cash | $ 650,729 | |
| Short term investments | 167,000 | |
| Fair value adjustment (Trading) | 8,000 | |
| Accounts receivable | 200,200 | |
| Allowance for doubtful accounts | $ 25,000 | |
| Inventory | 75,000 | |
| Purchases | - | |
| Prepaid insurance | 16,400 | |
| LT (Debt) investments (HTM) | 177,824 | |
| Land | 75,000 | |
| Building | 150,000 | |
| Accumulated depreciation: building | 4,400 | |
| Equipment | 60,000 | |
| Accumulated depreciation: equipment | 22,000 | |
| Patent | 27,500 | |
| Accounts payable | 75,240 | |
| Notes payable | 235,000 | |
| Income taxes payable | 69,600 | |
| Unearned rent revenue | 24,000 | |
| Bonds Payable | 800,000 | |
| Premium on Bonds Payable | 56,860 | |
| Common stock | 104,000 | |
| PIC In Excess of Par-Common Stock | 40,000 | |
| Retained earnings | - | |
| Treasury stock | - | |
| Dividends | 41,000 | |
| Sales Revenue | 802,845 | |
| Advertising expense | 8,400 | |
| Wages expense | 80,350 | |
| Office expense | 21,700 | |
| Depreciation expense | 26,400 | |
| Utilities expense | 31,000 | |
| Insurance expense | 82,000 | |
| Income taxes expense | 69,600 | |
| Rent Revenue | 12,000 | |
| Wages Payable | 12,750 | |
| Interest Expense | 1,175 | |
| Interest Payable | 49,175 | |
| Impairment Loss Expense | 10,000 | |
| Investment in Bonds | 3,561 | |
| Unrealized gain/loss Income | 8,000 | |
| Bond Interest Expense | 43,089 | |
| Interest Revenue | 19,561 | |
| Paid in Capitol Treasury Stock | 21,000 | |
| Bad Debt Expense | 25,000 | |
| Delievery Truck | 39,815 | |
| Capital Lease Liability - Delievery Truck | 29,312 | |
| Lease Interest Expense | 2,540 | |
| Lease Interest Expense Payable | 2,540 | |
| Pension Expense | 40,000 | |
| Pension Asset/Liability | 50,000 | |
| Other Comprehensive Income | 55,000 | |
| Deferred Compensation | 10,000 | |
| Cost of Goods Sold | 275,000 | |
| $ 2,468,283 | $ 2,468,283 |
Solution
ABC Corporation Income Statement For the Year ended December 31, 2014 Sales Revenue 802,845 Less: Cost of Goods Sold 275,000 Gross Profit 527,845 Operating Expenses: Advertising expense 8,400 Wages expense 80,350 Office expense 21,700 Depreciation expense 26,400 Utilities expense 31,000 Bad Debt Expense 25,000 Lease Interest Expense 2,540 Pension Expense 40,000 Insurance expense 82,000 Income taxes expense 69,600 Total Operating Expenses -386,990 Operating Profit 140,855 Other Income & expenses Rent Revenue 12,000 Interest Expense -1,175 Impairment Loss Expense -10,000 Unrealized gain/loss Income 8,000 Bond Interest Expense -43,089 Interest Revenue 19,561 Total Other Income & expense -14,703 Net Income 126,152 Other Comprehensive Income 55,000 Comprehensive Income 181,152
