Question

Need Income Statement Need Statement of Retained Earnings, Balance Sheet, Closing Entries

ABC Corporation Unadjusted Trial Balance December 31, 2016 Debit Credit Cash 759,444 Accounts receivable 442,120 Allowance for doubtful accounts - Inventory Allowance to Reduce Inventory to NRV - Purchases 247,000 Prepaid insurance 6,750 Land 88,000 Building 37,500 Accumulated depreciation: building 1,150 Equipment 21,600 Accumulated depreciation: equipment 9,000 Patent 50,000 Accounts payable 88,851 Notes payable 40,000 Income taxes payable 99,000 Unearned rent revenue 13,500 Bonds Payable 700,000 Premium on Bonds Payable 56,774 Common stock 125,000 PIC In Excess of Par-Common Stock 40,000 Retained earnings Treasury stock 20,000 Dividends 28,000 Sales Revenue 790,000 Advertising expense 9,240 Wages expense 62,150 Office expense 28,500 Depreciation expense 10,150 Utilities expense 33,571 Insurance expense 20,250 Income taxes expense 99,000 $1,963,275 $1,963,275

ABC Corporation Adjusted Trial Balance December 31, 2016 Debit Credit Cash 875,444 Accounts Receivable 442,120 Inventory 100,000 Purchases - - Pre-Paid Insurance 4,500 Land 88,000 Allowance for Doubtful Accounts 75,000 Allowance to reduce Inventory to NRV - Bonds Payable $695,271 Premium on Bonds Payable 56,774 Building 37,500 Accumilated Deprication-Building 1,265 Equipment 21,600 Accumilated Deprication-Equipment 9,900 Patent 45,000 Account Payable 88,851 Notes Payable 40,000 Income Tax Payable 99,000 Unearned Rent Revenue 9,000 Common Stock 135,000 Retained Earnings - Dividends 28,000 PIC in Excess of Par - Common Stock 130,000 Sales Revenue 790,000 Advertising Expense 9,240 Wages Expense 67,150 Office Expense 28,500 Deprication Expense 11,165 Utilities Expense 33,571 Treasury Stock 10,000 Insurance Expense 22,500 Income Tax Expense 99,000 Rent Revenue 4,500 Wages Payable 5,000 Interest Expense 30,571 Interest Payable 35,300 Loss on Impairment 5,000 Cost of Goods Sold 147,000 Bad Debt Expense 75,000 PIC from Treasury Stock 6,000 Total 2,180,861 2,180,861

can't be completed until Income Statement is done, Income before Income Taxes

Corporate taxes are due in four estimated quarterly payments on April 15, June 15, September 15, and December 15. However, for the purposes of this ABC illustration, we will assume that estimates are not paid, and that the tax is paid in full on the return's March 15, 2017 due date. ABC's income tax rate is 35%. The entire year's income tax expense was estimated at the beginning of 2016 to be $108,000, so January through November income tax expense recognized amounts to $99,000 (11/12 months). Since we are assuming estimates are not made during the year, the balance in Income taxes payable represents income tax accrued for January through November. Assume no deferred tax assets or deferred tax liabilities. Based on the income before income taxes figure from the income statement, calculate and record December's income tax expense adjustment so that the entire year's tax expense is correct (i.e. the difference between total income tax expense and the amount already accrued through November).

Some Figures to help out along the way -Check figure 1: Income from operations = $395,874. -Check figure 2: Income before income taxes = $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

Answer 1

1.

Income Statement For the year ended December 31, 2016
Sales Revenue		$ 790,000
Cost of Goods Sold		147,000
Gross Profit		643,000
Operating Expenses
Advertising Expense	9,240
Wages Expense	67,150
Office Expenses	28,500
Depreciation Expense	11,165
Utilities Expense	33,571
Insurance Expense	22,500
Bad Debt Expense	75,000	247,126
Income from Operations		395,874
Other Income / Expenses/ Losses
Rent Revenue	4,500
Interest Expense	(30,571 )
Loss on Impairment	(5,000)	(31,071)
Income before Taxes		364,803
Income Tax Expense		99,000
Net Income		$ 265,803

2.

Statement of Retained Earnings For the year ended December 31, 2016
Balance, January 1, 2016	$ 0
Add: Net Income	265,803
Less: Dividends	(28,000)
Balance, December 31, 2016	$ 237,803

3.

Balance Sheet December 31, 2016
Assets
Current Assets
Cash	875,444
Accounts Receivable	442,120
Less: Allowance for Doubtful Accounts	(75,000)
Inventory	100,000
Prepaid Insurance	4,500
Total Current Assets		1,347,064
Property Plant and Equipment
Land	88,000
Buildings	37,500
Less: Accumulated Depreciation: Buildings	(1,265)
Equipment	21,600
Less: Accumulated Depreciation: Equipment	(9,900)
Property Plant and Equipment, net		135,935
Intangible Assets
Patent		50,000
Total Assets		$ 1,532,999
Liabilities
Current Liabilities
Accounts Payable	88,851
Notes Payable	40,000
Income Taxes Payable	99,000
Unearned Rent Revenue	9,000
Interest Payable	35,300
Total Current Liabilities		272,151
Long Term Liabilities
Bonds Payable	695,271
Premium on Bonds Payable	56,774	752,045
Total Liabilities		1,024,196
Stockholders Equity
Common Stock	135,000
PLC in Excess of Par: Common Stock	130,000
PLC from Treasury Stock	6,000
Retained Earnings	237,803
Total Stockholders Equity		508,803
Total Liabilities and Stockholders Equity		1,532,999