Terry Co. Adjusted Trial Balance For Year End December 31 2019 Acct # Account Title Cash 702,000 cash is still the sa A/R 1,458,000 Allowance for Bad Debts S 102,060 Inventory 1,944,000 Prepaid Insurance 184,000 Prepaid Utilities 202,500 Equipment 4,536,000 Accumulated Depreciation S 2,592,000 Building 1,296,000 Expansion Fund 486,000 Land 1,782,000 Loans to other business 648,000 Patents 243,000 Accounts Payable 363,174 Wages Payable 194,400 Income Tax Payable 250,932 Unearned Revenue 405,000 Current Portion of Loan Payable 81,000 Loan Payable 405,000 Notes Payable 2,268,000 Common Stock 1,900,000 Additional Paid-In Capital 486,000 Retained Earnings 2,919,500 Dividends S 270,000 Sales Revenue $ 16,200,000 Sales Returns 769,500 Sales Discounts 194,400 Rent Revenue S 50,625 Cost of Goods Sold 8,867,212 Advertising Expense 303,750 Bad Debt Expense 21,060 Consulting and Legal Fee Expese 10,125 Depreciation Expense 972,000 Executive Salaries Expense 708,750 Income Tax Expense 764,757 Insurance Expense 314,725 Interest Expense 103,275 Miscellaneous Admin. Expenses 7,999 Miscellaneous Selling Expenses 78,975 Office Supplies Expense 62,775 Sales Force Salaries Expense 222,750 Selling Commission Expense 810,000 Shipping Expense 132,638 Utilities Expense 121,500 Total 28,217,691 $ 28,217,691Terry Co. Multi-Step Income Statement (Adjusted) For Year Ended Dec. 31, 2019 Sales Revenue $16,200,000 Less: Sales Discounts $ (194,400) Sales Returns $ (769,500) $ (963,900) Net Sales Revenue $15,236,100 Cost of Good Sold 8,867,212 Inventory, December 31, Year 1 $ 2,268,000 Cost of Good Sold Avail. Fro Sale $ 6,599,212 Less: Inventory, December 31, Year 2 $ (1,944,000) Cost of Goods Sold $ 4,655,212 Gross Profit $10,580,888 Operating Activities Selling Expenses Advertising Expense $ 303,750 Bad Debt Expense $ 21,060 Consulting and Legal fee Expense 10,125 Depreciation Expense $ 972,000 Miscellaneous Selling Expense $ 78,975 Sales Force Salaries Expense $ 222,750 Shipping Expense $ 132,638 Selling Commision Expense 81,000 Total Selling Expense $ 1,822,298 Administrative expense Executive Salaries Expense $ 708,750 Insurance Expense $ 314,725 Miscellaneous Admin. Expense $ 7,999 Office Supplies Expense $ 62,775 Utilities Expense $ 121,500 Total Administrative Expenses $ 1,215,749 $ 3,038,047 Income from Operations $ 7,542,841 Other Gains and Losses Rent Revenue $ 50,625 Interest Expense (103,275) $ (52,650) Income from Cont. Oper. Before Taxes $ 7,490,191 Income Tax Expense (764,757) Net Income $ 6,725,434