The adjusted trial balance of Pearl Industries, Inc., follows.

Requirement

1. Prepare Pearl Industries, Inc.’s single-step income statement and statement of retained earnings for the year ended December 31, 2018, and its balance sheet on that date.

Transcribed Image Text:

A1 Pearl Industries, Inc. Adjusted Trial Balance December 31, 2018 2 (Amounts in thousands) 3 Account 4 Cash 5 Accounts receivable 6 Inventories 7 Prepaid expenses 8 Property, plant, and equipment 9 Accumulated depreciation–property, plant, and equipment 10 Other assets 11 Accounts payable 12 Income tax payable 13 Other liabilities 14 Common stock 15 Retained earnings (beginning December 31, 2017) 16 Dividends 17 Sales revenue 18 Cost of goods sold 19 Selling, administrative, and general expenses 20 Income tax expense 21 Total Credit Debit $ 4,400 1,600 2,700 1,800 16,500 $ 2,400 9,700 7,900 400 2,700 14,500 5,700 1,600 43,200 25,100 10,500 2,900 $76,800 $76,800 22