QUESTION 3:

Holy cross Industries perform adjusting entries every month, but close its accounts only at year end. The Agencys year -end adjusted Trial Balance dated December 31, 2018, appears below.

DATA

Accounts Payable	57,000
Accounts Receivable	34,000
Building	255,000
Cash	15,000
Equipment	76,000
Loan from bank	320,000
Prepaid Expenses	12,000
Sales	123,000
Salary Expense	22,000
Utility Expense	8,000
Long-term liability	35,000
Trademarks	6,000
Short-term Notes Payable	44,000
Interest Expenses	4,500
Inventory	82,000
Cost of Goods Sold	62,000
Income Tax Expense	4,500

Prepare an Income Statement for the year ended December 31, 2018. Also prepare Holy cross Industries balance sheet dated December 31, 2018.