Towing Company's December 31, 2024 unadjusted trialbalance reported the following account balances:Accounts payableAccounts receivableAdvertising expenseBuildingCashCommon stockCost of goods soldDividendsEquipmentIncome tax expenseInterest revenueInventoryNotes payablePrepaid insuranceRent expenseRetained earningsSales revenueTrademarkUnearned revenueUtilities expenseI$28,000$49,000$14,000$63,000$22,000$78,000$31,000$16,000$47,000$12,000$39,000$55,000$89,000$27,000(3)$43,000$51,000 (at January 1, 2024)$94,000$25,000$36,000$11,000Towing Company has not yet recorded adjusting entriesrelated to the following three items:(1) The prepaid insurance in the unadjusted trial balancerelates to a three-year insurance policy purchased onOctober 1, 2024.(2) Salaries earned by employees which have not yet beenpaid by Towing Company totaled $19,000.The unearned revenue in the unadjusted trial balancerelates to a $36,000 payment from a customer receivedon July 1, 2024 for work to be performed each monthfor the next two years.Calculate the net income reported by Towing Company for2024 after the appropriate adjusting entries have beenrecorded and posted.

Income statement represents the net income or net loss that is calculated by deducting the expenses…

Answered: Towing Company's December 31, 2024…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Towing Company's December 31, 2024 unadjusted trial balance reported the following account balances: