The adjusted trial balance for China Tea Company at December 31, 2024, is presented below: DebitCreditCash$ 12,100 Accounts receivable166,000 Prepaid rent6,600 Inventory41,000 Equipment460,000 Accumulated depreciation $ 141,000Accounts payable 46,000Notes payable (due in three months) 46,000Salaries payable 5,600Interest payable 17,100Common stock 280,000Retained earnings 85,200Dividends14,500 Sales revenue 560,000Costs of goods sold260,000 Salaries expense136,000 Rent expense31,000 Depreciation expense46,000 Interest expense3,600 Advertising expense4,100 Totals$ 1,180,900$ 1,180,900Required:Prepare an income statement for China Tea Company for the year ended December 31, 2024.

Income statement is the one which is prepared by the entity for the purpose of determining the gross…

Answered: The adjusted trial balance for China…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 10MCQ: Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income...

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	Debit	Credit
Cash	$ 12,100
Accounts receivable	166,000
Prepaid rent	6,600
Inventory	41,000
Equipment	460,000
Accumulated depreciation		$ 141,000
Accounts payable		46,000
Notes payable (due in three months)		46,000
Salaries payable		5,600
Interest payable		17,100
Common stock		280,000
Retained earnings		85,200
Dividends	14,500
Sales revenue		560,000
Costs of goods sold	260,000
Salaries expense	136,000
Rent expense	31,000
Depreciation expense	46,000
Interest expense	3,600
Advertising expense	4,100
Totals	$ 1,180,900	$ 1,180,900

Required:

Prepare an income statement for China Tea Company for the year ended December 31, 2024.

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