80.2K
Verified Solution
Link Copied!
Based on the trial balance below create an Income Statement:
Dividends Given: $1,607,500
ACCT # | Account Name | Debit | Credit |
1000 | Cash | $402,575 | |
1030 | Treasury Bills | $100,000 | |
1031 | Municiple Bonds | $104,425 | |
1032 | Investments | $770,500 | |
1210 | Accounts Receivable | $30,000 | |
1400 | Inventory | $20,000 | |
1500 | Furniture and Fixtures | $0 | |
1599 | Accumulated Depreciation | | $30,000 |
2000 | Accounts Payable | $40,000 | |
3000 | Common Stock | | $0 |
3500 | Retained Earnings | $65,000 | |
4000 | Gross Sales | | $3,900,000 |
4100 | Sales Returns | $20,000 | |
5000 | Cost of Goods Sold | $1,080,000 | |
6000 | Legal and Professional Fees | $20,000 | |
6020 | Advertising Expense | $50,000 | |
6080 | Charitable Contributions | $79,000 | |
6150 | Premiums on Key Person Life Insurance Policy | $45,500 | |
6500 | Rent Expense | $120,000 | |
6600 | Employee Wages | $150,000 | |
6601 | Officer Salaries | $400,000 | |
7010 | Interest Income: Taxable | | $10,000 |
7011 | Interest Income: NonTaxable | | $7,000 |
7020 | Dividend Income | | $30,000 |
8100 | Depreciation | $30,000 | |
8200 | Interest Expense | $50,000 | |
9000 | Federal Income Tax Expense | $360,000 | |
9010 | State Income and Payroll Taxes Paid | $40,000 | |
| | $3,977,000 | $3,977,000 |
Answer & Explanation
Solved by verified expert