Reference no: EM132472812

The trial balance follows for Blue Spruce Corporation at December 31, 2020:

BLUE SPRUCE CORPORATION

Trial Balance

December 31, 2020

Purchase discounts                                             $17,500

Cash                                                                $331,975

Accounts receivable                                             183,750

Rent revenue                                                        31,500

Retained earnings                                                  280,000

Salaries and wages payable                                       31,500 credit

Sales revenue                                                       1,925,000 credit

Notes receivable                                                    192,500 debit

Accounts payable                                                    85,750 credit

Accumulated depreciation-equipment                           49,000 credit

Sales discounts                                                         25,375 debit

Sales returns and allowances                                       30,625 debit

Notes payable                                                           122,500 credit

Selling expenses                                                         406,000 debit

Administrative expenses                                                173,250 debit

Common shares                                                           525,000 credit

Income tax expense                                                        94,325 debit

Dividends                                                                      78,750 debit

Allowance for doubtful accounts                                        8,750 credit

Supplies                                                                        24,500 debit

Freight in                                                                      35,000 debit

Land                                                                            122,500 debit

Equipment                                                                    245,000 debit

Bonds payable                                                              175,000 credit

Gain on disposal of land                                                    52,500 credit

Accumulated depreciation-buildings                                    34,300 credit

Inventory                                                                      155,750 debit

Buildings                                                                         171,500 debit

Purchases                                                                   1,067,500 Debit

Totals                                                                      $3,338,300 $3,338,300

Point 1: A physical count of inventory on December 31 showed that there was $112,000 of inventory on hand. Blue Spruce is a private company that prepares financial statements in accordance with ASPE.

Problem 1: To prepare condensed single-step income statement.