Prepare the income statement ABC Corporation Adjusted Trial Balance December 31,

Question

Prepare the income statement

ABC Corporation Adjusted Trial Balance December 31, 2014 Debit Credit Cash $                 650,729 Short term investments                     167,000 Fair value adjustment (Trading)                         8,000 Accounts receivable                     200,200 Allowance for doubtful accounts $                25,000 Inventory                       75,000 Purchases                               - Prepaid insurance                       16,400 LT (Debt) investments (HTM)                     177,824 Land                       75,000 Building                     150,000 Accumulated depreciation: building                     4,400 Equipment                       60,000 Accumulated depreciation: equipment                   22,000 Patent                       27,500 Accounts payable                   75,240 Notes payable                  235,000 Income taxes payable                   69,600 Unearned rent revenue                   24,000 Bonds Payable                  800,000 Premium on Bonds Payable                   56,860 Common stock                  104,000 PIC In Excess of Par-Common Stock                   40,000 Retained earnings                            - Treasury stock                               - Dividends                       41,000 Sales Revenue                  802,845 Advertising expense                         8,400 Wages expense                       80,350 Office expense                       21,700 Depreciation expense                       26,400 Utilities expense                       31,000 Insurance expense                       82,000 Income taxes expense                       69,600 Rent Revenue                   12,000 Wages Payable                   12,750 Interest Expense                         1,175 Interest Payable                   49,175 Impairment Loss Expense                       10,000 Investment in Bonds                         3,561 Unrealized gain/loss Income                     8,000 Bond Interest Expense                       43,089 Interest Revenue                   19,561 Paid in Capitol Treasury Stock                   21,000 Bad Debt Expense                       25,000 Delievery Truck                       39,815 Capital Lease Liability - Delievery Truck                   29,312 Lease Interest Expense                         2,540 Lease Interest Expense Payable                     2,540 Pension Expense                       40,000 Pension Asset/Liability                       50,000 Other Comprehensive Income                   55,000 Deferred Compensation                       10,000 Cost of Goods Sold                     275,000 $               2,468,283 $           2,468,283

Explanation / Answer

ABC Corporation Income Statement For the Year ended December 31, 2014 Sales Revenue 802,845 Less: Cost of Goods Sold 275,000 Gross Profit 527,845 Operating Expenses: Advertising expense 8,400 Wages expense 80,350 Office expense 21,700 Depreciation expense 26,400 Utilities expense 31,000 Bad Debt Expense 25,000 Lease Interest Expense 2,540 Pension Expense 40,000 Insurance expense 82,000 Income taxes expense 69,600 Total Operating Expenses -386,990 Operating Profit 140,855 Other Income & expenses Rent Revenue 12,000 Interest Expense -1,175 Impairment Loss Expense -10,000 Unrealized gain/loss Income 8,000 Bond Interest Expense -43,089 Interest Revenue 19,561 Total Other Income & expense -14,703 Net Income 126,152 Other Comprehensive Income 55,000 Comprehensive Income 181,152

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