Towing Company's December 31, 2024 unadjusted trialbalance reported the following account balances:Accounts payableAccounts receivableAdvertising expenseBuildingCashCommon stockCost of goods soldDividendsEquipmentIncome tax expenseInterest revenueInventoryNotes payablePrepaid insuranceRent expenseRetained earningsSales revenueTrademarkUnearned revenueUtilities expenseI$28,000$49,000$14,000$63,000$22,000$78,000$31,000$16,000$47,000$12,000$39,000$55,000$89,000$27,000(3)$43,000$51,000 (at January 1, 2024)$94,000$25,000$36,000$11,000Towing Company has not yet recorded adjusting entriesrelated to the following three items:(1) The prepaid insurance in the unadjusted trial balancerelates to a three-year insurance policy purchased onOctober 1, 2024.(2) Salaries earned by employees which have not yet beenpaid by Towing Company totaled $19,000.The unearned revenue in the unadjusted trial balancerelates to a $36,000 payment from a customer receivedon July 1, 2024 for work to be performed each monthfor the next two years.Calculate the net income reported by Towing Company for2024 after the appropriate adjusting entries have beenrecorded and posted.

Income statement represents the net income or net loss that is calculated by deducting the expenses…

Answered: Towing Company's December 31, 2024…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 1AP

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The following is the adjusted trial balance data for Elm Connections as of December 31, 2019. A. Use the data provided to compute net sales for 2019. B. Compute the gross margin for 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth) D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.
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The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
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Based on the data presented in Exercise 6-25, journalize the closing entries. On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: a. Prepare a multiple-step income statement for the year ended March 31, 2019. b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.
Read the following information and answer questions that follow.Tamapo prepared the following trial balance as at 31 December 2019 which contains errors: TamapoTrial Balance as at 31 December 2019P PMotor Vehicle at net 38,000.00 Sales 109,000.00Purchases 80,230.00Inventory 5,100.00Bank Overdraft 13,900.00Cash in Hand 1,500.00Drawings 6,500.00Discount Allowed 720.00Other Operating Expenses 9,350.00Wages and Salaries 16,500.00Capital 35,000.00Difference 60,700.00 188,250.00 188,250.00Required:Prepare a corrected trial balance as at 31 December 2019.

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Towing Company's December 31, 2024 unadjusted trial balance reported the following account balances: