(Learning Objective 4: preparing the financial statements) The adjusted trial balance of Honeybee Hams, Inc., follows.
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Honeybee Hams, Inc. Adjusted Trial Balance December 31, 20X6 |
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Adjusted Trial Balance |
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(Thousands) |
Debit |
Credit |
|
Cash |
$ 3,300 |
|
|
Accounts receivable |
1,800 |
|
|
Inventories |
1,100 |
|
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Prepaid expenses |
1,900 |
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Property, plant, equipment |
6,600 |
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Accumulated depreciation |
$ 2,400 |
|
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Other assets |
9,900 |
|
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Accounts payable |
7,700 |
|
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Income tax payable |
600 |
|
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Other liabilities |
2,200 |
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Common stock |
4,900 |
|
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Retained earnings (beginning, December 31, 20X5) |
4,500 |
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Dividends |
1,700 |
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Sales revenue |
41,000 |
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Cost of goods sold |
25,000 |
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Selling, administrative, and general expense |
10,000 |
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Income tax expense |
2,000 |
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Total |
$63,300 |
$63,300 |
Required
Prepare Honeybee Hams, Inc.’s, income statement and statement of retained earnings for the year ended December 31, 20X6, and its balance sheet on that date. Draw the arrows linking the three statements.