Problem:
Below find a working trial balance for Smith Company.
Smith Company
31-Dec-12
Trial Balance (accounts in alphabetical order)
Debit Credit
Accounts payable 67,000
Accounts receivable 24,500
Cash 16,700
Common stock 10,000
Depreciation expense 24,350
Cost of goods sold 254,000
Equipment 296,000
(net of depreciation)
Insurance 1,400
Inventory 25,000
Long-term debt 145,000
Marketing 4,500
Paid-in capital 90,000
Property taxes 8,900
Rent 18,000
Retained earnings ???
Revenues 406,000
Salaries 67,500
Utilities 6,700
Total 747,550 718,000
Required:
- Prepare an income statement and a balance sheet in good format based on the trial balance below.