Reference no: EM132573730

Question 1: Income statement. From the following adjusted trial balance for the Smith Company for the year 2018, create income statement including the Cost of Goods Manufactured portion.

Accounts Receivable               125 000

Advertising Expense                  270 000

Cash                                       55 000

Direct Labour                            356 000

Factory Insurance                       55 000

Factory Machinery Depreciation      55 000

Factory Property Taxes                 120 000

Factory Repairs                               8 000

Factory Utilities                          12 900

Finished Goods Inventory (1/1/18) 45 000

Finished Goods Inventory (12/31/18) 5 000

Indirect Labour                              245 000

Office Property Tax                           35 000

Office Utilities Expense                           34 000

Plant Manager's Salary                              80 000

Raw Materials Inventory (1/1/18)                38 000

Raw Materials Inventory (12/31/18)                65 000

Raw Materials Purchases                              350 000

Sales 1                                                     567 890

Sales Discounts                                             103 500

Work in Process Inventory (1/1/18)                     7 000

Work in Process Inventory (12/31/18)                45 000