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The adjusted trial balance for China Tea Company at December 31, 2012, is presented below: Accounts Debit Credit Cash $ 11,000 Accounts receivable 150,000 Prepaid
The adjusted trial balance for China Tea Company at December 31, 2012, is presented below:
Accounts | Debit | Credit | ||||
Cash | $ | 11,000 | ||||
Accounts receivable | 150,000 | |||||
Prepaid rent | 5,000 | |||||
Supplies | 25,000 | |||||
Equipment | 300,000 | |||||
Accumulated depreciation | $ | 135,000 | ||||
Accounts payable | 20,000 | |||||
Salaries payable | 4,000 | |||||
Interest payable | 1,000 | |||||
Notes payable (due in two years) | 30,000 | |||||
Common stock | 200,000 | |||||
Retained earnings | 50,000 | |||||
Dividends | 20,000 | |||||
Service revenue | 400,000 | |||||
Salaries expense | 180,000 | |||||
Advertising expense | 70,000 | |||||
Rent expense | 15,000 | |||||
Depreciation expense | 30,000 | |||||
Interest expense | 2,000 | |||||
Utilities expense | 32,000 | |||||
Totals | $ | 840,000 | $ | 840,000 |
|
Prepare an income statement for China Tea Company for the year ended December 31, 2012
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