Question

he adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 11,000 Accounts receivable 163,000 Prepaid rent 9,000 Supplies 31,000 Equipment 330,000 Accumulated depreciation $ 126,000 Accounts payable 10,000 Salaries payable 3,700 Interest payable 1,700 Notes payable (due in two years) 39,000 Common stock 240,000 Retained earnings 214,400 Dividends 26,000 Service revenue 300,000 Salaries expense 200,000 Advertising expense 75,000 Rent expense 16,000 Depreciation expense 38,000 Interest expense 2,800 Utilities expense 33,000 Totals $ 934,800 $ 934,800 Prepare an income statement for China Tea Company for the year ended December 31, 2021:

Answer 1

Answer:

                               China Tea Company Income Statement

                               For the Year Ended December 31, 2021

                                                                           $                                $

Revenue                                                                                      

Service Revenue                                                                           300,000

Less Expenses:

Salaries expense                                       200,000

Advertising expense                                    75,000

Rent expense                                                16,000

Depreciation expense                                 38,000

Interest expense                                            2,800

Utilities expense                                           33,000                    (‭364,800‬)

Net Loss                                                                                        (  64,800)