The adjusted trial balance for China Tea Company at December 31, 2018, is presented below: Debit Credit Cash 12,100 Accounts receivable 166,000 Prepaid rent 6,600 Inventory 41,000 Equipment 460,000 Accumulated depreciation - equipment 141,000 Accounts payable 46,000 Notes payable - due in three months 46,000 Salaries payable 5,600 Interest payable 2,600 Common stock 280,000 Retained earnings 85,200 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 1,166,400 1,166,400 Required: Prepare an income statement for China Tea Company for the year ended December 31, 2018.
The adjusted trial balance for China Tea Company at December 31, 2018, is presented below: Debit Credit Cash 12,100 Accounts receivable 166,000 Prepaid rent 6,600 Inventory 41,000 Equipment 460,000 Accumulated depreciation - equipment 141,000 Accounts payable 46,000 Notes payable - due in three months 46,000 Salaries payable 5,600 Interest payable 2,600 Common stock 280,000 Retained earnings 85,200 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 1,166,400 1,166,400 Required: Prepare an income statement for China Tea Company for the year ended December 31, 2018.
Related questions
The adjusted trial balance for China Tea Company at December 31,2013, is presented below:
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 three 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 |
| Prepare the closing entries for China Tea Company for the yearended December 31, 2013. |
[The following information applies to the questionsdisplayed below.]
Income statement and balance sheet data for The Athletic Atticare provided below.
| THE ATHLETIC ATTIC Income Statements For the years ended December 31 | ||
| 2019 | 2018 | |
| Net sales | $11,240,000 | $9,700,000 |
| Cost of goodssold | 7,340,000 | 6,000,000 |
| Gross profit | 3,900,000 | 3,700,000 |
| Expenses: | ||
| Operating expenses | 1,660,000 | 1,610,000 |
| Depreciation expense | 200,000 | 200,000 |
| Interest expense | 46,000 | 46,000 |
| Income tax expense | 472,000 | 410,000 |
| Total expenses | 2,378,000 | 2,266,000 |
| Net income | $1,522,000 | $1,434,000 |
| THE ATHLETIC ATTIC Balance Sheets December 31 | |||||||||||||||||||||||||||||||
| 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||
| Current assets: | |||||||||||||||||||||||||||||||
| Cash | $ 231,000 | $ 160,000 | $ 216,000 | ||||||||||||||||||||||||||||
| Accounts receivable | 996,000 | 746,000 | 766,000 | ||||||||||||||||||||||||||||
| Inventory | 1,731,000 | 1,361,000 | 1,031,000 | ||||||||||||||||||||||||||||
| Supplies | 136,000 | 106,000 | 81,000 | ||||||||||||||||||||||||||||
| Long-termassets: | |||||||||||||||||||||||||||||||
| Equipment | 1,340,000 | 1,340,000 | 1,340,000 | ||||||||||||||||||||||||||||
| Less: Accumulateddepreciation | (660,000) | (460,000) | (260,000) | ||||||||||||||||||||||||||||
| Totalassets | $3,774,000 | $3,253,000 | $3,174,000 | ||||||||||||||||||||||||||||
| Liabilitiesand Stockholders' Equity | |||||||||||||||||||||||||||||||
| Currentliabilities: | |||||||||||||||||||||||||||||||
| Accounts payable | $ 192,400 | $ 123,000 | $ 104,400 | ||||||||||||||||||||||||||||
| Interest payable | 4,600 | 0 | 4,600 | ||||||||||||||||||||||||||||
| Income tax payable | 46,000 | 41,000 | 36,000 | ||||||||||||||||||||||||||||
| Long-term liabilities: | |||||||||||||||||||||||||||||||
| Notes payable | 560,000 | 560,000 | 560,000 | ||||||||||||||||||||||||||||
| Stockholders'equity: | |||||||||||||||||||||||||||||||
| Common stock | 660,000 | 660,000 | 660,000 | ||||||||||||||||||||||||||||
| Retained earnings | 2,311,000 | 1,869,000 | 1,809,000 | ||||||||||||||||||||||||||||
| Totalliabilities and stockholdersâ equity | $3,774,000 | $3,253,000 | $3,174,000 | ||||||||||||||||||||||||||||
| Required: 1. Calculate the following risk ratios for 2018and 2019: (Round your answers to 1 decimalplace.)
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Calculate the following profitability ratios for 2018 and 2019:(Round your answers to 1 decimal place.)
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Part A
The December 31, 2016 (pre-closing) adjusted trial balance forSunshine Enterprises was as follows:
Account Title | Debits | Credits |
Accounts payable | 90,000 | |
Accounts receivable | 170,000 | |
Accumulated depreciation â equipment | 260,000 | |
Capital stock | 490,000 | |
Cash | 26,000 | |
Cost of goods sold | 480,000 | |
Depreciation expense | 60,000 | |
Equipment | 700,000 | |
Interest expense | 4,000 | |
Inventory | 150,000 | |
Note payable (due in six months) | 60,000 | |
Rent expense | 30,000 | |
Retained earnings | 62,000 | |
Salaries and wages payable | 8,000 | |
Sales revenue | 770,000 | |
Salaries expense | 120,000 | |
TOTALS | 1,740,000 | 1,740,000 |
Calculate the following:
1. Net income (loss)
2. Total current assets
3. Total current liabilities
4. Total shareholders' equity
NOTE: it is not necessary to prepare completefinancial statements for Part A.
