Question
Prepare Income Statement showing EBIT & EAT and classified Balance Sheet for the following Trial balance. M/S Kareem & Khan Trial Balance December 31, 2019
Prepare Income Statement showing EBIT & EAT and classified Balance Sheet for the following Trial balance.
M/S Kareem & Khan
Trial Balance
December 31, 2019
Title of Account | Debit | Credit |
Cash | 110,350 |
|
Account receivable | 54600 |
|
Note receivable | 8000 |
|
Inventory-opening | 40,500 |
|
Supplies | 650 |
|
Prepaid insurance | 1200 |
|
Furniture and Fixture | 183,200 |
|
Accumulated depreciation-furniture |
| 2400 |
Account payable |
| 47,000 |
Note payable (long-term) |
| 12,600 |
Capital-Frank |
| 100,000 |
Sales revenue |
| 338,000 |
Sales discount | 1400 |
|
Sales return and allowance | 2000 |
|
Interest revenue |
| 600 |
Purchases | 89,300 |
|
Purchases discount |
| 3000 |
Purchases return and allowances |
| 1200 |
Freight in | 5200 |
|
Rent expense | 8400 |
|
TOTAL | 504,800 | 504,800 |
- Inventory on hand at the end of the year $ 42,000
- Depreciation on Furniture book value 2%
- Tax rate is 10% applied
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