Question

Could someone please help me do the adjusted trial balance and prepare an end of the month income statement. Thank you.

Trial Balance December 31st, 2019 Debit Credit Cash 245700 119113 Notes receivable 15000 Accounts receivable 21000 7500 Buildings Vehicles 62000 21000 21000 Prepaid insurance Inventory Accounts payable 6000 0 23040 17280 14400 17600 Common stock 0 96000 Deferred revenue 3480 4350 Notes payable 1375 115000 Dividends 1600 Service revenue 0 3480 Depreciation expense 300 0 Sale revenue 36000 0 Sales discount 150 432 Cost of goods sold Interest expense Supplies expense 17280 0 530 0 3200 0 Gains 0 2300 Salaries expense 4000 0 Total $440055 440055

Adjusted journal entries

Answer 1

cash 0 Adjusted Trial Balance December 31, 2019 Debit Credit 245700 119113 Notes receivable 15000 Accounts receivable 21000 7500 Supplies 1800 Buildings 62000 Prepaid insurance 5500 Insurance expense 500 Inventory 23040 17280 Accumulated depreciation 0 200 accounts payable 14400 17600 Interest payable I 75 Common stock 96000 Vehicle 21000 21000 Income tax expense 3700 Warranty liability 450 Salaries payable 0 1 1200 Notes payable 1375 115000 Dividends 1600 Service revenue 0 3480 Interest revenue Depreciation expense 500 Sales revenue 0 1 36870 Bad debt expense 405 Income tax expense 3700 Sales discounts 150 432 Cost of goods sold 17280 Interest expense 530 Supplies expense 5000 Gain 01 2300 Warranty expense 450 Salaries expense 5200 Allowance for uncollectible accounts 0 1 Total $444405 $444405 75

Income statement: Multiple Step Income Statement For the Year Ended December 31st, 2019 Revenue: Service revenue 3,480 Sales revenue 36,870 Sales discount -150 Net Revenue 40,200 Less: Cost of goods sold 1-17,2801 Gross profit 22,920 Operating expenses Depreciation expense 500 Bad debt expense 405 Insurance expense 500 Salaries expense 5,200 Supplies expense 1,400 Warranty Expense 450 Total Operating expenses -8,455 Operating income 14,465 Other Revenue and Expense: Interest revenue Interest expense Total other revenue and expense Income before income tax 13,9651 Income tax expense -3,700 Net income 10,265) - 575 -5001