Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Debit Credit Cash 10,800 Accounts receivable 153,000 Prepaid rent 5,300

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Debit Credit Cash 10,800 Accounts receivable 153,000 Prepaid rent 5,300 Inventory 28,000 Equipment 330,000 Accumulated depreciationequipment 128,000 Accounts payable 33,000 Notes payabledue in three months 33,000 Salaries payable 4,500 Interest payable 10,600 Common stock 215,000 Retained earnings 56,600 Dividends 55,900 Sales revenue 430,000 Costs of goods sold 195,000 Salaries expense 123,000 Rent expense 18,000 Depreciation expense 33,000 Interest expense 2,300 Advertising expense 2,800 Totals 910,700 910,700 Required: Prepare an income statement for China Tea Company for the year ended December 31, 2021.

I have completed the trial balance, but it is asking for an entry other more expenses. Normally tax expense would be entered but there is no tax information. Can someone help me figure out what I am missing? Example is below:

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:

Debit Credit
Cash 10,800
Accounts receivable 153,000
Prepaid rent 5,300
Inventory 28,000
Equipment 330,000
Accumulated depreciationequipment 128,000
Accounts payable 33,000
Notes payabledue in three months 33,000
Salaries payable 4,500
Interest payable 10,600
Common stock 215,000
Retained earnings 56,600
Dividends 55,900
Sales revenue 430,000
Costs of goods sold 195,000
Salaries expense 123,000
Rent expense 18,000
Depreciation expense 33,000
Interest expense 2,300
Advertising expense 2,800
Totals 910,700 910,700

Required: Prepare an income statement for China Tea Company for the year ended December 31, 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting and Reporting

Authors: Barry Elliott, Jamie Elliott

14th Edition

978-0273744535, 273744445, 273744534, 978-0273744443

More Books

Students also viewed these Accounting questions