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    Using a Trial Balance to Prepare an Income Statement

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    Using the trial balance given at the top of the next page, prepare an income statement.
    Debit Credit
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,000
    Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,000
    Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,000
    Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
    Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
    Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 150,000
    Loan Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000
    Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
    Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000
    Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,000
    Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244,000
    Utilities Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,000
    Rental Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
    Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,040,000 $1,040,000

    © BrainMass Inc. brainmass.com June 3, 2020, 8:22 pm ad1c9bdddf
    https://brainmass.com/business/income-statement/using-a-trial-balance-to-prepare-an-income-statement-134831

    Solution Summary

    The solution discusses using a trial balance to prepare an income statement.

    $2.19

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