E3-24A. (Learning Objective 4: Preparing the financial statements) The adjusted trial balance of Tasty Food, Inc., follows.

Requirement 1. Prepare Tasty Food, Inc.’s Income Statement and statement of changes in equity for the year ended December 31, 20X8, and its Balance Sheet on that date.

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A1 1 2 (Amounts in thousands) 3 Account 4 Cash 5 Accounts receivable 6 Inventories 7 Prepaid expenses Tasty Food, Inc. Adjusted Trial Balance December 31, 20X8 8 Property, plant, and equipment 9 Accumulated depreciation 10 Other assets 11 Accounts payable 12 Income tax payable 13 Other liabilities 14 Share capital 15 Retained earnings (beginning, December 31, 20X7) 16 Dividends 17 Sales revenue 18 Cost of goods sold 19 Selling, administrative, and general expenses 20 Income tax expense 21 22 Total 23 Debit $3,900 Credit 1,600 1,200 1,800 6,600 $2,200 9,500 7,700 500 2,300 4,800 4,700 1,500 41,800 26,300 10,200 1,400 $64,000 $64,000