Chapter 19, Problem 21E

1.

To determine

Concept introduction:

Income statement: Income statement shows the net of revenues and expenses of the company and is very important financial statement of the company. It shows the turnover of the company and helps to take various important decisions related to income and expenses.

To prepare: The income statement of Company T as on December 31.

2.

To determine

Concept introduction:

Income statement: The income statement shows the net revenues and expenses of the company and is a very important financial statement of the company. It shows the turnover of the company and helps to take various important decisions related to income and expenses.

To compute: The ending balance of inventory of raw material, work in progress, and finished goods.