Based on the following information prepare a classified balance sheet and an inc

Q: Based on the following information prepare a classified balance sheet and an inc

Sales revenue 400 000 Cost of goods sold 180 000 180 000 profit 220 000 Other expense Salaries expense 120 000 rent 15000 Depreciation 30 000 interest 2000 Bad debt 2500 Total 169500 Net icncome 50500 Sales revenue 400 000 Cost of goods sold 180 000 180 000 profit 220 000 Other expense Salaries expense 120 000 rent 15000 Depreciation 30 000 interest 2000 Bad debt 2500 Total 169500 Net icncome 50500

ID: 2376863 • Letter: B

Question

Based on the following information prepare a classified balance sheet and an income statement for the China Tea Company.

China Tea Company Trial Balance December 31, 201X Debit Credit Cash 10,500 Accounts receivable 150,000 Prepaid rent 5,000 Inventory 25,000 Equipment 300,000 Accumulated depreciation - equipment 125,000 Accounts payable 30,000 Notes payable - due in 3 months 30,000 Salaries payable 4,000 Interest payable 1,000 Capital stock 200,000 Retained earnings 50,000 Sales revenue 400,000 Cost of goods sold 180,000 Salaries expense 120,000 Rent expense 15,000 Depreciation expense 30,000 Interest expense 2,000 Advertising expense 2,500 Totals 840,000 840,000

Explanation / Answer

Sales revenue

400 000

Cost of goods sold

180 000

profit

220 000

Other expense

Salaries expense

120 000

rent

15000

Depreciation

30 000

interest

2000

Bad debt

2500

Total

169500

Net icncome

50500