The adjusted trial balance for China Tea Company at December 31, 2024, is presented below:   Debit Credit Cash $ 12,100   Accounts receivable 166,000   Prepaid rent 6,600   Inventory 41,000   Equipment 460,000   Accumulated depreciation   $ 141,000 Accounts payable   46,000 Notes payable (due in three months)   46,000 Salaries payable   5,600 Interest payable   17,100 Common stock   280,000 Retained earnings   85,200 Dividends 14,500   Sales revenue   560,000 Costs of goods sold 260,000   Salaries expense 136,000   Rent expense 31,000   Depreciation expense 46,000   Interest expense 3,600   Advertising expense 4,100   Totals $ 1,180,900 $ 1,180,900 Required: Prepare an income statement for China Tea Company for the year ended December 31, 2024.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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The adjusted trial balance for China Tea Company at December 31, 2024, is presented below:

  Debit Credit
Cash $ 12,100  
Accounts receivable 166,000  
Prepaid rent 6,600  
Inventory 41,000  
Equipment 460,000  
Accumulated depreciation   $ 141,000
Accounts payable   46,000
Notes payable (due in three months)   46,000
Salaries payable   5,600
Interest payable   17,100
Common stock   280,000
Retained earnings   85,200
Dividends 14,500  
Sales revenue   560,000
Costs of goods sold 260,000  
Salaries expense 136,000  
Rent expense 31,000  
Depreciation expense 46,000  
Interest expense 3,600  
Advertising expense 4,100  
Totals $ 1,180,900 $ 1,180,900

Required:

Prepare an income statement for China Tea Company for the year ended December 31, 2024.

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