At December 31, 2004, the general ledger of Hoffman Electric had the following account balances. All adjusting entries (except for income taxes at 35%) have been made. The company had 10,400 shares of common stock outstanding during the year.
|
Accounts payable |
$8,950 |
Equipment |
$80,300 |
|
Accounts receivable |
14,970 |
Gain on sale of land |
4,800 |
|
Accrued liabilities |
21,000 |
Interest expense |
1,420 |
|
Accumulated depreciation |
15,300 |
Merchandise |
18,465 |
|
Advertising expense |
9,968 |
Land |
30,000 |
|
Cash |
9,530 |
Retained earnings* |
57,984 |
|
Common stock |
36,000 |
Sales revenue |
260,772 |
|
Cost of goods sold |
102,690 |
Utilities expense |
9,002 |
|
Depreciation expense |
13,510 |
Wages expense |
59,780 |
Prepare an income statement in good form. (Hint: See Exhibit 1.)