PIILU Financial Statements The adjusted trial balance columns of Braiden Company's spreadsheet are shown. Braiden Company Spreadsheet (Partial) For the Year Ended December 31, 20 ADJUSTED TRIAL BALANCE ACCOUNT TITLE DEBIT CREDIT Cash 15,720 Government Notes 3,500 50 Interest Receivable Accounts Receivable 25,100 Allowance for Doubtful Accounts 1,350 Finished Goods Inventory 18,420 7,510 Work in Process Inventory Materials Inventory 4,750 500 Estimated Returns Inventory 330 480 700 25,000 90,000 Office Supplies Factory Supplies Prepaid Insurance Land Factory Building Accumulated Depreciation-Factory Building Factory Equipment Accumulated Depreciation-Factory Equipment Accounts Payable Customer Refunds Payable 20,650 100,000 29,000 17,000 700 700 Customer Refunds Payable Income Tax Payable 3,600 Interest Payable 600 Bonds Payable 50,000 Capital Stock 55,000 Paid-in Capital in Excess of Par 15,000 80,375 Retained Earnings Cash Dividends Sales 20,000 402,800 Sales Returns and Allowances 6,270 Interest Revenue 200 Factory Overhead 92,500 92,500 Cost of Goods Sold 295,145 Wages Expense 45,200 Office Supplies Expense 1,500 2,100 1,700 Bad Debt Expense Utilities Expense-Office Interest Expense Income Tax Expense 2,800 9,500 768,775 768,775 456,715 495,500 Net Income 38,785 Additional information needed to prepare the financial statements is as follows: Braiden Company Schedule of Cost of Goods Manufactured For Year Ended December 31, 20- Work in process, January 1 Direct materials Materials inventory, January 1 Materials purchases Materials available Materials inventory, December 31 Cost of materials used Less indirect materials included in overhead Cost of direct materials used Direct labor Factory overhead Total manufacturing costs Total work in process during the period Work in process, December 31 Cost of goods manufactured Feedback Check My Work Use the adjusted trial balance to complete the schedule. Line items are intentionally provided on subtotals to help prepare the schedule Prepare an income statement for the year ended December 31, 20- Braiden Company Prepare an income statement for the year ended December 31, 20- Braiden Company Income Statement For Year Ended December 31, 20- Sales Less sales returns and allowances Net sales Cost of goods sold: Finished goods inventory, January 1 Estimated returns inventory, January 1 Cost of goods manufactured Cost of goods available for sale Finished goods inventory, December 31 Estimated returns inventory, December 31 Cost of goods sold Gross profit Operating expenses: Wages expense Office supplies expense Bad debt expense Utilities expense office Total operating expenses Operating income Other revenue: Interest revenue Total operating expenses Operating income Other revenue: Interest revenue Other expenses Interest expense Income before income taxes Income tax Net income Feedback Check My World Use the adjusted trial balance and the Schedule of Cost of Goods Manufactured to complete the income Statement. This income statement includes a detailed section of cost of goods sold Line items are intentionally provided on subtotals to help prepare the statement 2. Prepare a statement of retained earnings for the year ended December 31, 20- Braiden Company Statement of Retained Earnings For Year Ended December 31, 20- Retained earnings, January 1 Add net income for the year 2. Prepare a statement of retained earnings for the year ended December 31, 20-- Braiden Company Statement of Retained Earnings For Year Ended December 31, 20- Retained earnings, January 1 Add net income for the year Less cash dividends Retained earnings, December 31 Feedback Check My Work Use the adjusted trial balance as a source for beginning retained earnings, dividends, and net income. Another source of net income is the income Statement 3. Prepare a balance sheet as of December 31, 20-- Braiden Company Balance Sheet December 31, 20-- Assets Current assets: Cash Government notes Interest receivable Accounts receivable Less allowance for doubtful acounts 3. Prepare a balance sheet as of December 31, 20-- Braiden Company Balance Sheet December 31, 20-- Assets Current assets: Cash Government notes Interest receivable Accounts receivable Less allowance for doubtful accounts Inventories: Finished goods Work in process Materials Estimated returns inventory Office Supplies Factory supplies Prepaid insurance Total current assets Property, plant, and equipment: Land Factory building eBook Calculator Print Item Total current assets Property, plant, and equipment: Land Factory building Less accumulated depreciation-factory building Factory equipment Less accumulated depreciation-factory equipment Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable Customer refunds payable Income tax payable Interest payable Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' Equity Capital stock Paid in capital in excess of par Retained earnings Total stockholders' equity eBook Calculator Printem Current abilities: Accounts payable Customer refunds payable DOOD Income tax payable Interest payable Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' Equity Capital stock Paid-in capital in excess of par bod DO Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Feedback Check My Work Use the adjusted trial balance and the Statement of Retained Earnings to complete the Balance Sheet. Follow the order of accounts in the trial balance Feedback Check My Work Partially correct