December 31, 2010 Acct No. Account Title Debit Credit 29, 210 100 116, 000 43,000 2,500 89,000 7,500 394, 000 60,000 35,000 16,000 4,500 500 4,000 5,000 40,000 1001 Cash 1002 Cash - Payroll Account 1003 Cash - Money Market 1005 Receivables 1006 Allowance for doubtful accounts 1010 Merchandise inventories Prepaid expenses and other current 1015 assets 1110 Property and equipment 1111 Accumulated depreciation 2001 Accounts payable 2010 Accrued payroll and employee benefits 2012 Payroll taxes payable 2015 Interest payable 2017 Current portion of long term debt 2020 Income taxes payable 2210 Long term debt 2220 Other debt 3101 Preferred stock 3110 Common stock 3111 Additional paid-in capital 3120 Retained earnings 5001 Merchandise sales 5003 Services sales 6001 Cost of Merchandise Sales 6003 Cost of services sales 7001 Salares & Wages 7003 Payroll tax expense 7005 Employee benefits 7010 Advertising 7020 Rent 7023 Utilities 7025 Depreciation 7030 Bad debt expense 7040 Interest Expense 7050 Miscellaneous expense 7900 Income tax expense 8001 Dividends 500 145,000 230,000 820, 000 182, 000 475.000 83,000 125,000 8, 400 5, 300 40,000 34, 000 4,500 30,000 5,000 1,500 2,000 38, 490 14,000 YES Check trial balance totals: Do dr = cr? If no, difference is QUESTION 1 Using the Sunny's Companions, Inc trial balance (posted separately in Bb Assignments) to construct an income statement and balance sheet, reveals the following amounts. Enter the amounts to the nearest dollar and use commas, e.g., 250,000 Gross profit $ 444,000 Net income before tax $ Total assets $ Retained earnings $ QUESTION 2 Income tax expense is $38,490. Assuming that the tax entry is made at the end of the year, which of the follow entries would have made to record this expense? Income tax expense 38,490 Cash 38,490 38,490 Cash 38,490 Income tax expense Income tax payable 5,000 Cash 5,000 38,490 Income tax expense OD. Income tax payable 38,490 38,490 Income tax receivable E. Income tax revenue 38,490 QUESTION 3 A review of the trial balance indicates that Sunny's Companions has three sources of revenue related to sales: merchandise, service, and rentals. o True O False QUESTION 4 Sunny's Companions is probably a manufacturing company. o True False