1: What amount of Operating Income (or Income from Operations) will be reported on the Income Statement?

2: What amount of Retained Earnings will be reported on the Balance Sheet? Assume no Dividends are declared or paid in the current year.

3: The first paycheck in January, 20x2 totals $75,000. This includes payment for any salaries and wages accrued in 20x1. Therefore, what amount of the $75,000 will be recognized as Expense in January 20x2?

Use the following Unadjusted Trial Balance and adjusting entries information to answer the questions that follow. Adjustments Debit Credit Ref Ref Catalonia, Inc. Trial Balance December 31, 20x1 Trial Balance Debit Credit 372,000 156,000 180,000 144,000 870,000 250,000 192,000 78,500 29,000 a d 75,000 54,000 b 20,000 d Account Name Cash Supplies Accounts Receivable Prepaid Insurance Property, Plant, and Equipment Accum. Depreciation Accounts Payable Unearned Service Revenue Salaries & Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Interest Expense Salaries & Wags Expense Supplies Expense Insurance Expense Depreciation Expense Income Tax Expense 53,500 42,500 56,000 24,413 (1907 200,000 705,250 378,400 21,500 d 23,400 58,750 e f a b 56,000 42,500 29,000 54,000 20,000 24,413 300,913 1,804,150 1,804,150 300,913