(Preparing a balance sheet and income statement using a trial balance, LO 3, 4, 6)

Below is Kuskonook Inc.’ (Kuskonook) December 31, 2005 trial balance that was prepared before the closing journal entry was recorded. Use the trial balance to prepare Kuskonook’s balance sheet as of December 31, 2005 and the income statement for the year ended December 31, 2005. The accounts in the trial balance are listed alphabetically.

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Account Accounts payable Accounts receivable Accrued liabilities Amortization expense Bank loan payable Buildings Kuskonook Inc. Trial Balance December 31, 2005 Debit Credit $ $ 200,000 125,000 18,000 250,000 150,000 2,500,000 Capital stock 1,250,000 Cash 25,000 Cost of sales 2,445,000 Current portion of long-term debt 300,000 Furniture and equipment 1,750,000 Income tax expense 350,000 Income taxes payable Interest expense Interest payable Inventory Land Loan receivable 15,000 180,000 12,000 224,000 750,000 48,000