Create an Income Statement.
DEF Account Title Adjustments DR CR Adjusted Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR Unadjusted Trial Balance DR CR 270,788 1,070,384 18,514 359,180 782,572 28,728 47,880 121.296 1,118,264 118,104 111,826 32,000 Cash Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Note Receivable Merchandise Inventory Prepaid Insurance Prepaid Rent Supplies Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries & Wages Payable Uneamed Revenue Interest Payable Utilities Payable Note Payable (final payment due 2023) Common Stock Retained Earnings Dividends Sales Consulting Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Salaries & Wages Expense Depreciation Expense - Equipment Bad Debt Expense Insurance Expense Rent Expense Supplies Expense Utilities Expense Interest Revenue Interest Expense 758, 100 585,200 904,400 1 234,080 11,179.980 63,840 137,256 7.612.388 1,733,256 128,212 13,708,124 13,708,124 Net Income Prepare the Aging Schedule to determine the adjustment required for the allowance method for bad debt: Estimated % Uncollectible Estimated Amount Uncollectible Age of Accounts Balance December 31, 2019 526,938 Current 1.25% 6,586.73 1-30 days past due 31-90 days past due Over 90 days past due Total Accounts Receivable 305,233 152,870 85,343 1,070,384 2.50% 22.00% 53.00% 7,630.83 33,631.40 45,231.79 93,080.74 Use the following information to prepare adjusting entries for Broomfield Industries: On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. Prepaid insurance represents a 12-month insurance policy purchased on May 1. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019. Supplies on hand total $4,674. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a 5.7% annual interest rate. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019. Utility costs incurred but unrecorded for the month of December were estimated to be $12,314
