Towing Company's December 31, 2024 unadjusted trial balance reported the following account balances: Accounts payable $28,000...

Transcribed Image Text:

Towing Company's December 31, 2024 unadjusted trial balance reported the following account balances: Accounts payable $28,000 Accounts receivable $49,000 Advertising expense $14,000 Building $63,000 Cash $22,000 Common stock $78,000 Cost of goods sold $31,000 Dividends $16,000 Equipment $47,000 Income tax expense $12,000 Interest revenue $39,000 Inventory $55,000 Notes payable $89,000 Prepaid insurance $27,000 Rent expense $43,000 Retained earnings $51,000 (at January 1, 2024) Sales revenue $94,000 Trademark $25,000 Unearned revenue $36,000 Utilities expense $11,000 Towing 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 three-year insurance policy purchased on October 1, 2024. (2) Salaries earned by employees which have not yet been paid by Towing Company totaled $19,000. (3) The unearned revenue in the unadjusted trial balance relates to a $36,000 payment from a customer received on July 1, 2024 for work to be performed each month for the next two years. Calculate the net income reported by Towing Company for 2024 after the appropriate adjusting entries have been recorded and posted. Towing Company's December 31, 2024 unadjusted trial balance reported the following account balances: Accounts payable $28,000 Accounts receivable $49,000 Advertising expense $14,000 Building $63,000 Cash $22,000 Common stock $78,000 Cost of goods sold $31,000 Dividends $16,000 Equipment $47,000 Income tax expense $12,000 Interest revenue $39,000 Inventory $55,000 Notes payable $89,000 Prepaid insurance $27,000 Rent expense $43,000 Retained earnings $51,000 (at January 1, 2024) Sales revenue $94,000 Trademark $25,000 Unearned revenue $36,000 Utilities expense $11,000 Towing 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 three-year insurance policy purchased on October 1, 2024. (2) Salaries earned by employees which have not yet been paid by Towing Company totaled $19,000. (3) The unearned revenue in the unadjusted trial balance relates to a $36,000 payment from a customer received on July 1, 2024 for work to be performed each month for the next two years. Calculate the net income reported by Towing Company for 2024 after the appropriate adjusting entries have been recorded and posted.