Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The adjusted trial balance of Patino Company for the year ended September 30, 2021 is as shown below. It is prior to recording of income

The adjusted trial balance of Patino Company for the year ended September 30, 2021 is as shown below. It is prior to recording of income tax expense. All accounts are their normal balance (debit or credit). Patino has an income tax rate of 30%.

Accounts payable...............................................................................................................$ 80,000

Accounts receivable............................................................................................................. 40,000

Cash.................................................................................................................................... 50,000

Cash dividends declared........................................................................................................ 7,000

Common shares....................................................................................................................30,000

Cost of goods sold.............................................................................................................. 175,000

Dividends payable................................................................................................................. 4,000

Interest expense.................................................................................................................... 4,500

Inventory............................................................................................................................ 120,000

Operating expenses...............................................................................................................92,300

Preferred shares....................................................................................................................25,000

Retained earnings, beginning balance................................................................................. 11,900

Sales revenue..................................................................................................................... 320,000

Taxes payable.......................................................................................................................... 100

Instructions:

Prepare the income statement and statement of retained earnings for Patino Company for the year ended September 30, 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer Income Statement for Patino Company For the Year Ended September 30 2021 Sales Revenue 32... 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

Step: 3

blur-text-image

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

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

77639731, 978-0077639730

More Books

Students also viewed these Accounting questions