Question

Adjusted Trial Balance December 31, 2019 Debit Credit 2.300 200 700 1126 587 loccounts Receivable 13.500 ANNONCe forunlcctalic Account Interest Receivable 15 Supplies 1800 Prepaid insurance Linventory 15.760 NO1S Pecewable 15,000 Building Cain ercumulaild Deprecat lecounts Payable Deferred Revenue salaries Payable income taxes Pavobl way rent liability NOLS Payable common stock Dividends 1.100 Seruisl. Pevno Solcs Revenue Sales Discounts interest Ketenul Bad De exachsc COSTOC Loods sold 17,280 Depreciation Expense SED reuzme X Eybine 3.766 instante, Expense in crest Expense 575 Solaris Expense supplies Expense ONLY Expense Total $ 261,832 in 200 3,700 450 113.670 96.000 3 3,480 370 232 75 5.200 LUDO USD $ 1.6

complete the worksheets above using information from the adjusted trial balance sheet.

Answer 1

Income Statement:

Multiple Step Income Statement
For the Year Ended December 31st, 2019
Revenue:
Service revenue	3,480
Sales revenue	36,870
Sales discounts	282
Net revenue		40,632
Less: Cost of goods sold		-17,280
Gross profit		23,352
Operating Expenses:
Bad debt expense	405
Depreciation expense	500
Insurance Expense	500
Salaries expense	5,200
Supplies expense	1,400
Warranty expense	450
Total Operating expenses		-8,455
Operating income		14,897
Other Revenues and Expenses:
Interest revenue	75
Gain	2,300
Interest expense	-575
Total other Revenues and Expenses		1,800
Income before income tax		16,697
Income tax expense		-3,700
Net income		12,997

PLEASE NOTE THAT:

'Sales discount' is an expense and should be come under debit side in the trial balance and deduct from the Sales in Income statement. But, it is placed in credit side in the trial balance and trial balance is tallied. It should not be credit side. So that i have added 'sales discount' to sales instead of deduction because of credit balance.

Statement of retained earnings:

Statement of Stockholders' Equity
For the Year Ended December 31st, 2019
	Common Stock	Retained Earnings	Total
Beginning Balance (December 1st,2019	$0	$0	$0
Issued Stock	96,000		96,000
Net Income		12,997	12,997
Less: Dividends		-1,600	-1,600
Ending Balance (December 31st, 2019)	$96,000	$11,397	$107,397

Balance Sheet:

Balance Sheet
For the Year Ended December 31st, 2019
Assets		Liabilities
Current assets		Current liabilities
Cash	126,587	Accounts payable	3,200
Accounts receivable	13,500	Salaries payable	1,200
Allowance for uncollectable account	-405	Income taxes payable	3,700
Interest receivable	75	Warranty liability	450
Supplies	1,800	current portion of long-term Debt
Prepaid insurance	5,500	Total current liabilities	8,550
Inventory	5,760	Long-term Liabilities
Notes receivable	15,000	Notes payable	113,670
Total current assets	167,817	Total Liabilities	122,220
Property,plant, & Equipment:		Stockholders' Equity:
Building	62,000	Common stock	96,000
Accumulated depreciation	-200	Retained Earnings	$11,397
Total Property,plant, & Equipment	61,800	Total stockholders' equity	107,397
Total Assets	229,617	Total liabilities & Stockholders' Equity	229,617

PLEASE NOTE THAT:

I don't find any information about current-portion of long-term debt. Hope you have that information and if you have that information please segregate long-term debt into current and long-term.

Closing Entries:

Date	Account title and explanation	Debit	Credit
Dec.31	Service revenue	3,480
	Sales revenue	36,870
	Gain	2,300
	Interest revenue	75
	Sales discounts	282
	Retained earnings		43,007
	[To close revenue accounts]
Dec.31	Retained Earnings	30,010
	Cost of goods sold		17,280
	Bad debt expense		405
	Interest expense		575
	Depreciation expense		500
	Income tax expense		3,700
	Insurance Expense		500
	Salaries expense		5,200
	Supplies expense		1,400
	Warranty expense		450
	[To close expenses account]
Dec.31	Retained earnings	1,600
	Dividends		1,600
	[To close dividends account]

Please note that:

Revenues and expenses are directly closed to 'Retained earnings' because in the format there is only 3 dates which is for Revenues,Expenses and Dividends. So that i didn't use 'Income summary' account.

Closing Trial Balance:

Account title	Debit	Credit
Cash	126,587
Accounts receivable	13,500
Allowance for uncollectable account		405
Interest receivable	75
Supplies	1,800
Prepaid insurance	5,500
Inventory	5,760
Notes receivable	15,000
Building	62,000
Accumulated depreciation		200
Accounts payable		3,200
Deferred revenue	0
Salaries payable		1,200
Income taxes payable		3,700
Warranty liability		450
Notes payable		113,670
Common stock		96,000
Retained earnings		11,397
Total	230,222	230,222