Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of
ID: 2337630 • Letter: M
Question
Mint Cleaning Inc. prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. (Assume amounts are reported in thousands of dollars.) Account Titles Cash Accounts Receivable Prepaid Insura Equipment Accumulated Depreciation Accounts Payable Common Stock Retained EarningS Sales Revenue Insurance Expense Salaries and Wages Expense Supplies Expense Debit Credit s 47 nce 98 94 10 19 Totals $212 $212 Other data not yet recorded at December 31: a. Insurance expired during the year, $2 b. Depreciation expense for the year, $1 c. Salaries and wages payable, $4 d. Income tax expense, $6Explanation / Answer
Income statement :
MINT CLEANING INC. Income statement For the year ended december 31 (in thousands of dollars) Revenue Sales revenue 99 Total Revenue 99 Less: Expenses Insurance expense 2 Salary and wages payable (19+4) 23 Supplies expense 35 Depreciation expense 1 Total expenses 61 Income before tax 38 Less: Income tax 6 Net income 32