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.