The following accounts were taken from ABC Company's unadjusted trial balance at December 31, 2025: Accounts Payable Accounts Receivable Advertising Expense Cash Common Stock Cost of Goods Sold **** Dividends Income Tax Expense Interest Revenue Inventory Land Notes Payable Rent Expense Retained Earnings Sales Revenue Salaries Expense Supplies Trademark Unearned Revenue $58,000 $84,000 $14,000 $30,000 $94,000 $45,000 $12,000 $17,000 $56,000 $62,000 $94,000 $96,000 $10,000 $40,000 (at January 1, 2025) $99,000 $22,000 $46,000 $31,000 $24,000 ABC Company has not yet recorded adjusting entries related to the following three items: 1) ABC Company received a $12,000 utility bill on December 31, 2025 for utility usage in 2025. However, ABC Company will not pay the bill until January, 2026. 2) The unearned revenue from the unadjusted trial balance relates to a $24,000 payment from a customer received on June 1, 2025 for work to be performed each month for the next 20 months. 3) A physical count revealed that supplies costing $25,000 were still on hand as of December 31, 2025. Calculate the amount of net income that ABC Company would report in its 2025 income statement after the appropriate adjusting entries have been recorded and posted.
The following accounts were taken from ABC Company's unadjusted trial balance at December 31, 2025: Accounts Payable Accounts Receivable Advertising Expense Cash Common Stock Cost of Goods Sold **** Dividends Income Tax Expense Interest Revenue Inventory Land Notes Payable Rent Expense Retained Earnings Sales Revenue Salaries Expense Supplies Trademark Unearned Revenue $58,000 $84,000 $14,000 $30,000 $94,000 $45,000 $12,000 $17,000 $56,000 $62,000 $94,000 $96,000 $10,000 $40,000 (at January 1, 2025) $99,000 $22,000 $46,000 $31,000 $24,000 ABC Company has not yet recorded adjusting entries related to the following three items: 1) ABC Company received a $12,000 utility bill on December 31, 2025 for utility usage in 2025. However, ABC Company will not pay the bill until January, 2026. 2) The unearned revenue from the unadjusted trial balance relates to a $24,000 payment from a customer received on June 1, 2025 for work to be performed each month for the next 20 months. 3) A physical count revealed that supplies costing $25,000 were still on hand as of December 31, 2025. Calculate the amount of net income that ABC Company would report in its 2025 income statement after the appropriate adjusting entries have been recorded and posted.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 24E: The following data (in millions) were taken from the financial statements of Costco Wholesale...
Related questions
Question
A11
Transcribed Image Text:The following accounts were taken from ABC Company's
unadjusted trial balance at December 31, 2025:
Accounts Payable...
Accounts Receivable
Advertising Expense
Cash
Common Stock
Cost of Goods Sold
Dividends
Income Tax Expense
Interest Revenue
Inventory
.....
Land
Notes Payable
Rent Expense
Retained Earnings
Sales Revenue
Salaries Expense
Supplies
Trademark
Unearned Revenue
$58,000
$84,000
$14,000
$30,000
$94,000
$45,000
$12,000
$17,000
$56,000
$62,000
$94,000
$96,000
$10,000
$40,000 (at January 1, 2025)
$99,000
$22,000
$46,000
$31,000
$24,000
ABC Company has not yet recorded adjusting entries
related to the following three items:
1) ABC Company received a $12,000 utility bill on
December 31, 2025 for utility usage in 2025.
However, ABC Company will not pay the bill until
January, 2026.
2) The unearned revenue from the unadjusted trial
balance relates to a $24,000 payment from a
customer received on June 1, 2025 for work to be
performed each month for the next 20 months.
3) A physical count revealed that supplies costing
$25,000 were still on hand as of December 31, 2025.
Calculate the amount of net income that ABC Company
would report in its 2025 income statement after the
appropriate adjusting entries have been recorded and
posted.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College