Debit Credit Cash $ 61,000 Accounts receivable 92,500 Allowance for doubtful accounts $ 500 Inventories 38,500 Machinery 75,000 Equipment 29,000 Accumulated depreciation 10,000 Patent 85,000 Leasehold improvements 26,000 Prepaid expenses 10,500 Organization costs 29,000 Goodwill 24,000 Licensing Agreement No. 1 50,000 Licensing Agreement No. 2 49,000 Accounts payable 147,500 Unearned revenue 12,500 Common stock 300,000 Retained earnings, January 1, 2019 27,000 Sales 768,500 Cost of goods sold 466,000 Selling and general expenses 173,000 Interest expense 3,500 Total $1,239,000 $1,239,000 A B C D E F G H J K L M N Trial Balance Adjustments Trial Balance Income Statement Balance Sneet 9 12/31/2019 12-31-2019 10 11 Cash Account Title 12 Accounts receivable 13 Allowance for doubtful accounts Debit Credit Debit Credit Debit Credit Debit Credit $ $ 14 Inventories 15 Machinary $ 16 Equipment 61,000 92,500 $ 61,000 $ 92,500 $ 500 $ 500 38,500 $ 38,500 75,000 1 $ 17,000 $ 92,000 $ 29,000 $ 8,500 $ 37,500 17 Accumulated Depreciation $ 10,000 $ 10,000 21 18 Patent 19" 20 Leasehold Improvements 22 Prepaid expenses 23 Organization costs 24 Goodwill 25 Licensing agreement 1 26 Licensing agreement 2 27 Accounts payable 28 Unearned revenue 29 Common stock 30 Retained earnings $ 85,000 1 $ 17,000 $ 68,000 $ 26,000 S 11,000 $ 15,000 $ 10,500 S 10,500 $ 21,000 $ 29,000 $ 29,000 $ 24,000 $ 24,000 $ 50,000 $ 30,000 $ 20,000 $ 49,000 $ 1,000 $ 5,000 $ 45,000 $ 147,500 $ 147,500 $ 12,500 $ 1,000 $ 13,500 $ 300,000 $ 300,000 $ 27,000 $ 59,000 $ 86,000 33 34 Sales $ 768,500 35 Cost of Goods Sold $ 466,000 $ 768,500 $ 466,000 36 37 38 Selling and general expenses $ 173,000 $ 21,000 $ 194,000 $ 3,500 $ 3,500 32 45 49 22222224 4 4 4 4 4 4 39 Interest Expense 41 Subtotals 42 Net Income 43 Totals 44 47 Check figures: 48 $1,239,000 $1,239,000 $ 117,000 $ 117,000 $1,240,000 $1,240,000 Adjustments totals *123400 $ 123,400 Adjusted Trial Balance totals $1,243,000 $1,243,000 Net Income $ 114.100 $ 114.100