Reference no: EM132866470

Question - The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:

Debit Credit

Cash 12,500

Accounts receivable 170,000

Prepaid rent 7,000

Inventory 45,000

Equipment 500,000

Accumulated deprec-equipment 145,000

Accounts payable 50,000

Notes payable-due in three months 50,000

Salaries payable 6,000

Interest payable 19,100

Common stock 300,000

Retained earnings 94,000

Dividends 90,500

Sales revenue 600,000

Costs of goods sold 280,000

Salaries expense 140,000

Rent expense 35,000

Depreciation expense 50,000

Interest expense 4,000

Advertising expense 4,500

Totals 1,266,000 1,264,100

Required - Construct an income statement for China Tea Company for the year ended December 31, 2021.