Adjusted trial balance to prepare the income statement

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Reference no: EM13555585

The adjusted trial balance for Calla hay Company as of December 31, 2011, follows.

Cash

$ 22,000

 

Accounts receivable

44,000

 

Interest receivable

10,000

 

Notes receivable (due in 90 days)

160,000

 

Office supplies

8,000

 

Automobiles

160,000

 

Accumulated depreciation-Automobiles

 

$ 42,000

Equipment

130,000

 

Accumulated depreciation-Equipment

 

10,000

Land

70,000

 

Accounts payable

 

88,000

Interest payable

 

12,000

Salaries payable

 

11,000

Unearned fees

 

22,000

Long-term notes payable

 

130,000

J Callahay, Capital

 

247,800

J Callahay, Withdrawals

38,000

 

Fees earned

 

420,000

Interest earned

 

16,000

Depreciation expense - Automobiles

18,000

 

Depreciation expense - Equipment

10,000

 

Salaries expense

180,000

 

Wages expense

32,000

 

Interest expense

24,000

 

Office supplies expense          

26,000

 

Advertising expense

50,000

 

Repairs expense - Automobiles

16,800

 

Totals

$998,800

$998,800

Required

1. Use the information in the adjusted trial balance to prepare

(a) the income statement for the year ended December 31, 2011;

(b) the statement of owner's equity for the year ended December 31, 2011;

(c) the balance sheet as of December 31, 2011.

2. Calculate the profit margin for year 2011.

Reference no: EM13555585

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