The adjusted trial balance for Calla hay Company as of December 31, 2011, follows.
|
Cash |
$ 22,000 |
|
|
Accounts receivable |
44,000 |
|
|
Interest receivable |
10,000 |
|
|
Notes receivable (due in 90 days) |
160,000 |
|
|
Office supplies |
8,000 |
|
|
Automobiles |
160,000 |
|
|
Accumulated depreciation—Automobiles |
|
$ 42,000 |
|
Equipment |
130,000 |
|
|
Accumulated depreciation—Equipment |
|
10,000 |
|
Land |
70,000 |
|
|
Accounts payable |
|
88,000 |
|
Interest payable |
|
12,000 |
|
Salaries payable |
|
11,000 |
|
Unearned fees |
|
22,000 |
|
Long term notes payable |
|
130,000 |
|
J Callahay, Capital |
|
247,800 |
|
J Callahay, Withdrawals |
38,000 |
|
|
Fees earned |
420,000 |
|
|
Interest earned |
|
16,000 |
|
Depreciation expense — Automobiles |
18,000 |
|
|
Depreciation expense — Equipment |
10,000 |
|
|
Salaries expense |
180,000 |
|
|
Wages expense |
32,000 |
|
|
Interest expense |
24,000 |
|
|
Office supplies expense |
26,000 |
|
|
Advertising expense |
50,000 |
|
|
Repairs expense — Automobiles |
16,800 |
|
|
Totals |
$998,800 |
$998,800 |
Required
1. Use the information in the adjusted trial balance to prepare
(a) the income statement for the year ended December 31, 2011;
(b) the statement of owner’s equity for the year ended December 31, 2011;
(c) the balance sheet as of December 31, 2011.
2. Calculate the profit margin for year 2011.