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Kazak Import Company: Prepare an income statement for April

The post-closing trial balance of the Kazak Import Company at March 31 is as follows.

Debit Credit
Cash $ 321,000
Accounts Receivable 201,000
Inventory 504,000
Building and Equipment 1,560,000
Accumulated Depreciation $ 240,000
Accounts Payable 246,000
Salaries Payable 45,000
Common Stock 1,410,000
Retained Earnings 645,000
$2,586,000 $2,586,000

Transactions during April and additional information follow.

1. Sales on account $300,000
2. Cash sales 195,000
3. Cash collected on accounts receivable 240,000
4. Salaries paid in cash 150,000
5. Salaries earned on April 29 and 30, but not yet paid 15,000
6. Miscellaneous expenses paid in cash 30,000
7. Merchandise purchased on account 330,000
8. Accounts payable paid in cash 270,000
9. Merchandise inventory, April 30 540,000
10. Depreciation expense in April 9,000

Required:

Prepare an income statement for the month of April

Solution Summary

The solution prepares an income statement for April for Kazak Import Company.

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