Question

Prepare financial statements from an adjusted trial balance (LO3-5) [The following information applies to the questions displayed below.]
The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $ 11,200
Accounts Receivable 142,000
Prepaid Rent 5,200
Supplies 26,000
Equipment 320,000
Accumulated Depreciation $ 127,000
Accounts Payable 11,200
Salaries Payable 10,200
Interest Payable 4,200
Notes Payable (due in two years) 32,000
Common Stock 220,000
Retained Earnings 52,000
Service Revenue 420,000
Salaries Expense 320,000
Rent Expense 16,000
Depreciation Expense 32,000
Interest Expense 4,200
Totals 847,800 876,600
Required:
Prepare an income statement for the year ended December 31, 2021.
FIGHTIN' BLUE HENS CORPORATION
Income Statement
For the Year Ended December 31, 2021
Expenses:
Total expenses

Answer 1

Answer:

Fightin' Blue Hens Corporation

Income Statement

For the year ended December 31, 2021

Service Revenue                                             $420,000

Operating expenses:

• Salaries Expense $320,000
• Rent Expense $16,000
• Depreciation Expense $32,000           ($368,000)

Operating income                                            $52,000

Other revenues and expenses:

• Interest Expense $4,200                         ($4,200)

Net income before taxes                                 $47,800

*The totals of the trial balance sheet were added incorrectly, they both debit and credit total $876,600.