Question

James Company Adjusted Trial Balance December 31, 2017 DEBIT 3,100 2,460 CREDIT 650 500 20 30 3,000 150 10,720 1,200 600 670 125 50 Cash Accounts Receivable Allowance for Doubtful Accounts Short term Note Receivable Interest Receivable Supplies Inventory Prepaid Expenses Equipment Accumulated Depreciation Copyrights Accounts Payable Interest Payable Unearned Revenue Long Term Note Payable Common Stock Paid-in-Capital In Excess of Par - CS Retained Earnings (1/1/17) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad debt expense Depreciation Expense Amortization Expense Wages Expense Rent Expense Office Expense Supplies Expense Selling Expense Interest Expense Interest Revenue Income Tax Expense Totals 1,400 6,600 400 3,160 1,000 41,400 40 60 21,550 30 770 90 8,000 1,500 80 260 870 200 135 760 55,790 55,790

Statement of Retained Earnings

For the year ended December 31, 2017

Classified Balance Sheet

December 31, 2017

(Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.)

Answer 1

first, we have to prepare income statement.

James Company
Income Statement
For the year ended December 31, 2017
Revenues
Sales	$    41,400
Less: Sales returns and allowances	$          (40)
Less: Sales discounts	$          (60)
Net sales		$    41,300
LessL Cost of goods sold		$    21,550
Gross profit		$    19,750
Less: Operating expenses
Baddebt expenses	$            30
Depreciation expense	$          770
Amortization expense	$            90
Wages expense	$       8,000
Rent expense	$       1,500
Office expense	$            80
Supplies expense	$          260
Selling expense	$          870
Total operating expense		$    11,600
income from operations		$       8,150
Non operating income and (expenses)
Interest revenue	$          135
Interest expenses	$        (200)
Total Non operating income and (expenses)		$          (65)
Income before income tax		$       8,085
Less: Income tax expense		$          760
Net income		$       7,325

James Company
Statement of Retained Earnings
For the year ended December 31, 2017
Retained earnings, Beginning	$       3,160
Add: Net income	$       7,325
	$    10,485
Less: Dividends	$    (1,000)
Retained earnings, Ending	$       9,485

James Company
Balance Sheet
At December 31, 2017
Assets
Cash		$     3,100
Accounts Receivables	$   2,460
Less: Allowance for doubtful accounts	$    (650)	$     1,810
Short term note receivable		$         500
Interest receivable		$           20
Supplies		$           30
Inventory		$     3,000
Prepaid expense		$         150
Total current assets			$     8,610
Property, Plant and Equipment
Equipment		$   10,720
Accumulated depreciation—Equipment		$   (1,200)
Total property, plant and equipment			$     9,520
Intangible assets
Copyright			$         600
Total Assets			$   18,730
Liabilities
Current Liabilities
Accounts payable		$         670
Interest payable		$         125
Unearned revenue		$           50
Total current liabilities			$         845
Non-current liabilities
Long-term note payable			$     1,400
Total liabilities			$     2,245
Shareholders' equity
Common stock		$     6,600
Paid in capital in excess of par		$         400
Retained earnings		$     9,485
Total Shareholders' equity			$   16,485
Total liabilities and shareholders' equity			$   18,730

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