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.