Question

The ABC Corporation is in its first year of operations, and has the following adjusted trial balance, as of December 31, 2018.
ABC Corporation is a t-shirt manufacturer that leases a multi-use space for all of its needs.
Accounts Payable	$               1,200
Accounts Receivable	$               3,500
Accumulated Depreciation - Machinery and Equipment	$            (1,625)
Accumulated Depreciation - Office Equipment	$            (1,400)
Cash	$            10,400
Common Stock	$            10,000
Cost of Goods Sold	$            60,000
Depreciation Expense	$               3,025
Interest Expense	$                  640
Interest Payable	$                  640
Inventory	$               7,500
Machinery and Equipment	$            13,000
Marketing Expense	$               3,000
Notes Payable	$               8,000
Office Equipment	$               4,200
Retained Earnings	$                      -
Salaries Expense	$            22,000
Salaries Payable	$                  600
Sales Revenue	$          125,000
Supplies	$               1,000
Supplies Expense	$               8,200
Utilities Expense	$            12,000
Prepare a multi-step income statement for the year ended December 31, 2018 for ABC Corporation.
Prepare a classified balance sheet as of December 31, 2019 for ABC Corporation.
Comment on the financial results for this company.

ABC Corporation
Income Statement
For the Year Ended December 31, 2018
Less:
Gross Profit
Less Operating Expenses:
Income from Operations
Less Other Expenses:
Net Income (Loss)
Student, fill in all of the highlighted spaces.

ABC Corporation
Balance Sheet
As of December 31, 2018
Assets
Current Assets:
Total Current Assets
Long-Term Assets:
Total Assets
Liabilities and Stockholders Equity
Current Liabilities:
Long-Term Liabilities:
Total Liabilities:
Stockholder's Equity:
Total Liabilities and Stockholder's Equity
Student, fill in all of the highlighted spaces.

Answer 1

Income statement
Sales revenue		125,000
Less cost of goods sold		-60,000
Gross profit		65,000
Expenses
Salaries expense		22,000
Rent expense
Insurance expense
Depreciation professional library
Depreciation expenses		3,025
Marketing expnese		3,000
Utililties expense		12,000
supplies expenses		8,200
Total expenses		48,225
Income from operations		16,775
Less other expenses
Interest expense		640
Net income		16,135

Balance sheet
Assets		Liabilities
Current assets		Current liabilities
Cash	10,400	Accounts payable	1,200
Accounts receivable	3,500	Salaries payable	600
Inventory	7,500	Interest payable	640
Supplies	1,000	Note payable	8,000
Prepaid rent
Total current assets	22,400	Total current liabilities	10,440
Long term assets
Office equipment	4,200
Less accumulated depreciation	-1,400
Net Professional liabrary	2,800
		Stockholders equity
Machinery Equipment	13,000	Common stock	10,000
Less accumulated depreciation	-1,625	Retained earnings	16,135
Net equipment	11,375	Total stockholders equity	26,135
Total long term assets	14,175
Total assets	36,575	Total liabilities and stockholders equity	36,575