Need Income Statement Need Statement of Retained Earnings,Balance Sheet, Closing Entries
ABC Corporation Unadjusted Trial Balance December 31, 2016 DebitCredit Cash 759,444 Accounts receivable 442,120 Allowance fordoubtful accounts - Inventory Allowance to Reduce Inventory to NRV- Purchases 247,000 Prepaid insurance 6,750 Land 88,000 Building37,500 Accumulated depreciation: building 1,150 Equipment 21,600Accumulated depreciation: equipment 9,000 Patent 50,000 Accountspayable 88,851 Notes payable 40,000 Income taxes payable 99,000Unearned rent revenue 13,500 Bonds Payable 700,000 Premium on BondsPayable 56,774 Common stock 125,000 PIC In Excess of Par-CommonStock 40,000 Retained earnings Treasury stock 20,000 Dividends28,000 Sales Revenue 790,000 Advertising expense 9,240 Wagesexpense 62,150 Office expense 28,500 Depreciation expense 10,150Utilities expense 33,571 Insurance expense 20,250 Income taxesexpense 99,000 $1,963,275 $1,963,275
ABC Corporation Adjusted Trial Balance December 31, 2016 DebitCredit Cash 875,444 Accounts Receivable 442,120 Inventory 100,000Purchases - - Pre-Paid Insurance 4,500 Land 88,000 Allowance forDoubtful Accounts 75,000 Allowance to reduce Inventory to NRV -Bonds Payable $695,271 Premium on Bonds Payable 56,774 Building37,500 Accumilated Deprication-Building 1,265 Equipment 21,600Accumilated Deprication-Equipment 9,900 Patent 45,000 AccountPayable 88,851 Notes Payable 40,000 Income Tax Payable 99,000Unearned Rent Revenue 9,000 Common Stock 135,000 Retained Earnings- Dividends 28,000 PIC in Excess of Par - Common Stock 130,000Sales Revenue 790,000 Advertising Expense 9,240 Wages Expense67,150 Office Expense 28,500 Deprication Expense 11,165 UtilitiesExpense 33,571 Treasury Stock 10,000 Insurance Expense 22,500Income Tax Expense 99,000 Rent Revenue 4,500 Wages Payable 5,000Interest Expense 30,571 Interest Payable 35,300 Loss on Impairment5,000 Cost of Goods Sold 147,000 Bad Debt Expense 75,000 PIC fromTreasury Stock 6,000 Total 2,180,861 2,180,861
can't be completed until Income Statement is done, Income beforeIncome Taxes
Corporate taxes are due in four estimated quarterly payments onApril 15, June 15, September 15, and December 15. However, for thepurposes of this ABC illustration, we will assume that estimatesare not paid, and that the tax is paid in full on the return'sMarch 15, 2017 due date. ABC's income tax rate is 35%. The entireyear's income tax expense was estimated at the beginning of 2016 tobe $108,000, so January through November income tax expenserecognized amounts to $99,000 (11/12 months). Since we are assumingestimates are not made during the year, the balance in Income taxespayable represents income tax accrued for January through November.Assume no deferred tax assets or deferred tax liabilities. Based onthe income before income taxes figure from the income statement,calculate and record December's income tax expense adjustment sothat the entire year's tax expense is correct (i.e. the differencebetween total income tax expense and the amount already accruedthrough November).
Some Figures to help out along the way -Check figure 1: Incomefrom operations = $395,874. -Check figure 2: Income before incometaxes = $361,403. -Check figure 3: Total Current Assets at 12/31/16= $1,343,664. -Check figure 4: Retained Earnings at 12/31/16 =$206,912. -Check figure 5: Total Stockholders' Equity at 12/31/16 =$467,912. -Check figure 6: Total Liabilities at 12/31/16 =$1,056,687. If your need anything else please let me know
