Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Complete a Statement of Retained Earnings ABC Corporation Income Statement For the Year Ended December 31, 2014 Sales Revenue 792,845 Less: Operating Expenses Wages Expense
Complete a Statement of Retained Earnings ABC Corporation | |||
Income Statement | |||
For the Year Ended December 31, 2014 | |||
Sales Revenue | 792,845 | ||
Less: Operating Expenses | |||
Wages Expense | 80,350 | ||
Office Expense | 21,700 | ||
Utilities Expense | 31,000 | ||
Advertising Expense | $ 8,400 | ||
Insurance Expense | 82,000 | ||
Employee Compensation Expense | 10,000 | ||
Bad Debt Expense | 25,000 | ||
Pension Expense | 40,000 | ||
Depreciation Expense | 33,759 | ||
Total Operating Expenses | 332,209 | ||
Income from Operations | 460,636 | ||
Other Revenue/Expenses | |||
Rent Revenue | 12,000 | ||
Interest Income | 19,561 | ||
Interest Expense | (1,175) | 30,386 | |
Income before Taxes | 491,021 | ||
Income Tax Expense | (63,800) | ||
Net Income | 427,221 |
ABC Corporation | ||
Adjusted Trial Balance | ||
December 31, 2014 | ||
Debit | Credit | |
Accounts Payable | $ 65,340 | |
Accounts Receivable | 190,300 | |
Accumulated Depreciation: Building | $ 5,400 | |
Accumulated Depreciation: Equipment | 29,359 | |
Accumulated Other Comprehensive Income | 15,000 | |
Additional Paid in Capital - Treasury Stock | 21,000 | |
Advertising Expense | 8,400 | |
Allowance for Doubtful Accounts | 25,000 | |
Bad Debt Expense | 25,000 | |
Bonds Interest Expense | 43,088 | |
Bonds Payable | 1,600,000 | |
Building | 150,000 | |
Cash | 1,270,676 | |
Common Stock | 101,000 | |
Depreciation Expense | 33,759 | |
Dividends | 41,000 | |
Employee Compensation Expense | 10,000 | |
Employee Stock Option Outstanding Account | 10,000 | |
Equipment | 50,000 | |
Fair value adjustment (Trading) | (8,000) | |
Income Taxes Expense | 63,800 | |
Income Taxes Payable | 63,800 | |
Insurance Expense | 82,000 | |
Interest Expense | 1,175 | |
Interest Income | 19,561 | |
Interest Receivable | 16,000 | |
Inventory | - | |
Investment in Bonds of Intuit Corp | 200,000 | |
Investment in Bonds of Intuit Corp - Discount | 18,615 | |
Land | 75,000 | |
Lease Equipment | 43,796 | |
Lease Liability | 33,293 | |
LT (Debt) Investments (HTM) | 177,824 | |
Notes Payable | 236,175 | |
Office Expense | 21,700 | |
Patent | 37,500 | |
Pension Expense | 40,000 | |
Pension-Related Asset | 10,000 | |
PIC in Excess of Par - Common Stock | 33,000 | |
Premium on Bonds Payable | 118,630 | |
Prepaid Insurance | 17,400 | |
Purchases | 350,000 | |
Rent Revenue | 12,000 | |
Retained Earnings | - | |
Sales Revenue | 792,845 | |
Short-term Investments | 167,000 | |
Treasury Stock | - | |
Unearned Rent Revenue | 24,000 | |
Unrealized Holding Gains and Losses | 8,000 | |
Utilities Expense | 31,000 | |
Wages Expense | 80,350 | |
Wages Payable | $ 12,750 | |
Total | $ 3,236,768 | $ 3,236,768 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started