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The following accounts were taken from ABC Company's unadjusted trial balance at December 31, 2025: Accounts Payable Accounts Receivable Advertising Expense Cash Common Stock Cost of Goods Sold **** Dividends Income Tax Expense Interest Revenue Inventory Land Notes Payable Rent Expense Retained Earnings Sales Revenue Salaries Expense Supplies Trademark Unearned Revenue $58,000 $84,000 $14,000 $30,000 $94,000 $45,000 $12,000 $17,000 $56,000 $62,000 $94,000 $96,000 $10,000 $40,000 (at January 1, 2025) $99,000 $22,000 $46,000 $31,000 $24,000 ABC Company has not yet recorded adjusting entries related to the following three items: 1) ABC Company received a $12,000 utility bill on December 31, 2025 for utility usage in 2025. However, ABC Company will not pay the bill until January, 2026. 2) The unearned revenue from the unadjusted trial balance relates to a $24,000 payment from a customer received on June 1, 2025 for work to be performed each month for the next 20 months. 3) A physical count revealed that supplies costing $25,000 were still on hand as of December 31, 2025. Calculate the amount of net income that ABC Company would report in its 2025 income statement after the appropriate adjusting entries have been recorded and posted.

The following accounts were taken from ABC Company's unadjusted trial balance at December 31, 2025: Accounts Payable Accounts Receivable Advertising Expense Cash Common Stock Cost of Goods Sold **** Dividends Income Tax Expense Interest Revenue Inventory Land Notes Payable Rent Expense Retained Earnings Sales Revenue Salaries Expense Supplies Trademark Unearned Revenue $58,000 $84,000 $14,000 $30,000 $94,000 $45,000 $12,000 $17,000 $56,000 $62,000 $94,000 $96,000 $10,000 $40,000 (at January 1, 2025) $99,000 $22,000 $46,000 $31,000 $24,000 ABC Company has not yet recorded adjusting entries related to the following three items: 1) ABC Company received a $12,000 utility bill on December 31, 2025 for utility usage in 2025. However, ABC Company will not pay the bill until January, 2026. 2) The unearned revenue from the unadjusted trial balance relates to a $24,000 payment from a customer received on June 1, 2025 for work to be performed each month for the next 20 months. 3) A physical count revealed that supplies costing $25,000 were still on hand as of December 31, 2025. Calculate the amount of net income that ABC Company would report in its 2025 income statement after the appropriate adjusting entries have been recorded and posted.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following accounts were taken from ABC Company's unadjusted trial balance at December 31, 2025: Accounts Payable... Accounts Receivable Advertising Expense Cash Common Stock Cost of Goods Sold Dividends Income Tax Expense Interest Revenue Inventory ..... Land Notes Payable Rent Expense Retained Earnings Sales Revenue Salaries Expense Supplies Trademark Unearned Revenue $58,000 $84,000 $14,000 $30,000 $94,000 $45,000 $12,000 $17,000 $56,000 $62,000 $94,000 $96,000 $10,000 $40,000 (at January 1, 2025) $99,000 $22,000 $46,000 $31,000 $24,000 ABC Company has not yet recorded adjusting entries related to the following three items: 1) ABC Company received a $12,000 utility bill on December 31, 2025 for utility usage in 2025. However, ABC Company will not pay the bill until January, 2026. 2) The unearned revenue from the unadjusted trial balance relates to a $24,000 payment from a customer received on June 1, 2025 for work to be performed each month for the next 20 months. 3) A physical count revealed that supplies costing $25,000 were still on hand as of December 31, 2025. Calculate the amount of net income that ABC Company would report in its 2025 income statement after the appropriate adjusting entries have been recorded and posted.
Transcribed Image Text:The following accounts were taken from ABC Company's unadjusted trial balance at December 31, 2025: Accounts Payable... Accounts Receivable Advertising Expense Cash Common Stock Cost of Goods Sold Dividends Income Tax Expense Interest Revenue Inventory ..... Land Notes Payable Rent Expense Retained Earnings Sales Revenue Salaries Expense Supplies Trademark Unearned Revenue $58,000 $84,000 $14,000 $30,000 $94,000 $45,000 $12,000 $17,000 $56,000 $62,000 $94,000 $96,000 $10,000 $40,000 (at January 1, 2025) $99,000 $22,000 $46,000 $31,000 $24,000 ABC Company has not yet recorded adjusting entries related to the following three items: 1) ABC Company received a $12,000 utility bill on December 31, 2025 for utility usage in 2025. However, ABC Company will not pay the bill until January, 2026. 2) The unearned revenue from the unadjusted trial balance relates to a $24,000 payment from a customer received on June 1, 2025 for work to be performed each month for the next 20 months. 3) A physical count revealed that supplies costing $25,000 were still on hand as of December 31, 2025. Calculate the amount of net income that ABC Company would report in its 2025 income statement after the appropriate adjusting entries have been recorded and posted.
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