Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following accounts were taken from ABC Companys unadjusted trial balance at December 31, 2018: Accounts Payable ............ $62,000 Accounts Receivable ......... $34,000 Advertising Expense
The following accounts were taken from ABC Companys unadjusted trial balance at December 31, 2018: Accounts Payable ............ $62,000 Accounts Receivable ......... $34,000 Advertising Expense ......... $14,000 Building .................... $61,000 Cash ........................ $30,000 Common Stock ................ $94,000 Cost of Goods Sold .......... $67,000 Equipment ................... $53,000 Income Tax Expense .......... $17,000 Interest Revenue ............ $56,000 Inventory ................... $32,000 Prepaid Insurance ........... $18,000 Rent Expense ................ $10,000 Retained Earnings ........... $80,000 (at January 1, 2018) Sales Revenue ............... $99,000 Supplies .................... $24,000 Trademark ................... $31,000
ABC Company has not yet recorded adjusting entries related to the following three items: (1) The prepaid insurance in the unadjusted trial balance relates to a two-year insurance policy purchased on September 1, 2018. (2) Salaries earned by employees which have not yet been paid by ABC Company totaled $19,000. (3) On December 31, based on a physical count, ABC Company determined it had $16,000 of supplies still on hand.
Calculate the amount of net income that ABC Company would report in its 2018 income statement after the appropriate adjusting entries have been recorded and posted. Do not use decimals in your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started