Question Completion:
Unearned revenue is assumed to be $1,500 and not $2,000.
Answer:
Frozen Ice-cream Corporation (FICC)
Income Statement for the month of December 2020:
Revenue - Ice-cream sales                  $180,000 
Salaries expense          $160,000 
Rent expense                 $12,000
Utilities expense              $6,000          178,000
Income before tax                                  $2,000
Income tax (25%)                                         500
Net Income                                             $1,500
Retained earnings (December 1, 2018)    $17,000
Net income                                                  $1,500
Dividends                                                    $1,000
Retained earnings (December 31, 2018) $17,500
FICC's total revenue is $180,000.
Explanation:
a) Data and Calculations:
Trial Balance
Account Titles                      Debit     Credit
Cash                                     $9,000 
Accounts receivable            $4,500
Ice-cream inventory            $8,500
Prepaid Insurance               $3,000 
Equipment                        $95,000  
Accounts payable                                  $40,000 
Unearned revenue                                   $1,500 
Note payable (payable in 5 years)       $60,000 
Common stock                                           $500
Retained earnings (December 1, 2018) $17,000
Revenue - Ice-cream sales                  $180,000 
Salaries expense          $160,000 
Rent expense                 $12,000
Utilities expense              $6,000 
Dividends                          $1,000
Totals                          $299,000      $299,000
Income tax rate 25%