Prepare income Statement Spring Check Inc.Adjusted Trial BalanceDecember 31, 2018DebitCreditCash$1,250,000450,000Accounts ReceivableAllowance for Doubtful Accounts2$5,000Inventory, 12/31/182,480,000Equipment3,800,000Accumulated Deperciation - Equipment1,150,000BuildingAccumulated Deperciation - Building1,400,000420,000Land500,000Patent4,000,000Accounts Payable875,000Salaries and Wages Payable45,000Notes Payable - Due 7/31/19250,000Mortgage Payable - Due 12/31/2025$ 0.011,000,000Common Stock Par10,000APIC (Additional Paid in Capital in Excess of Par)1,990,000Retained Earnings3,425,000Dividends Declared - Common$400,000Sales14,400,000Sales Discounts2$180,000Sales Returns and Allowances2$210,000Cost of Goods Sold (COGS)5,350,000$ 1,300,000$Selling ExpensesAdministrative Expenses650,000Investment Revenue150,000$ 1,750,000$ 23,720,000Income Tax Expense$ 23,720,000

The income statement is an essential part of the financial statements of the company prepared by…

Cash $ 450,000 Accounts Receivable 1,250,000 Allowance for Doubtful Accounts $ 5,000 Inventory, 12/31/18 2,480,000 Equipment 3,800,000 Accumulated Deperciation - Equipment 1,150,000 Building Accumulated Deperciation - Building 1,400,000 420,000 Land 500,000 Patent 4,000,000 Accounts Payable 875,000 Salaries and Wages Payable 45,000 Notes Payable - Due 7/31/19 Mortgage Payable - Due 12/31/2025 $ 01 250,000 1,000,000 Common Stock Par 10,000 APIC (Additional Paid in Capital in Excess of Par) 1,990,000 Retained Earnings 3,425,000 Dividends Declared - Common $ 400,000 Sales 14,400,000 $ 180,000 2$ Sales Discounts Sales Returns and Allowances 210,000 Cost of Goods Sold (COGS) Selling Expenses 5,350,000 $ 1,300,000 $ Administrative Expenses 650,000 Investment Revenue 150,000 $ 1,750,000 $ 23,720,000 Income Tax Expense $ 23,720,000

Cash $ 450,000 Accounts Receivable 1,250,000 Allowance for Doubtful Accounts $ 5,000 Inventory, 12/31/18 2,480,000 Equipment 3,800,000 Accumulated Deperciation - Equipment 1,150,000 Building Accumulated Deperciation - Building 1,400,000 420,000 Land 500,000 Patent 4,000,000 Accounts Payable 875,000 Salaries and Wages Payable 45,000 Notes Payable - Due 7/31/19 Mortgage Payable - Due 12/31/2025 $ 01 250,000 1,000,000 Common Stock Par 10,000 APIC (Additional Paid in Capital in Excess of Par) 1,990,000 Retained Earnings 3,425,000 Dividends Declared - Common $ 400,000 Sales 14,400,000 $ 180,000 2$ Sales Discounts Sales Returns and Allowances 210,000 Cost of Goods Sold (COGS) Selling Expenses 5,350,000 $ 1,300,000 $ Administrative Expenses 650,000 Investment Revenue 150,000 $ 1,750,000 $ 23,720,000 Income Tax Expense $ 23,720,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 4MCQ

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