General Ledger for ABC Company
The following is the general ledger for ABC Company as of December 31, 20X1. Use this information to answer questions (1) through (4).
|
ABC Company
|
|
General Ledger
|
|
As of December 31, 20X1
|
|
|
Amount
|
|
Assets
|
|
|
Cash
|
$29,400
|
|
Accounts receivable
|
8,100
|
|
Supplies
|
4,900
|
|
Prepaid rent
|
20,200
|
|
Equipment (net)
|
63,800
|
|
Liabilities
|
|
|
Accounts payable
|
$ 6,300
|
|
Salaries payable
|
4,000
|
|
Interest payable
|
1,100
|
|
Utilities payable
|
3,700
|
|
Bonds payable
|
38,400
|
|
Stockholders' equity
|
|
|
Common stock
|
$60,900
|
|
Retained earnings
|
0
|
|
Dividends
|
2,100
|
|
Revenues
|
|
|
Sales revenue
|
$54,200
|
|
Interest revenue
|
1,400
|
|
Expenses
|
|
|
Cost of goods sold
|
$15,100
|
|
Salaries expense
|
7,100
|
|
Rent expense
|
4,900
|
|
Supplies expense
|
1,300
|
|
Utilities expense
|
4,800
|
|
Depreciation expense
|
2,500
|
|
Interest expense
|
2,100
|
|
Income tax expense
|
3,700
|
1. What is the amount of gross profit to be reported on ABC Company's 12/31/X1 income statement?
$40,500 $14,100 $39,100 $17,800
2. What is the amount of operating income (EBIT) to be reported on ABC Company's 12/31/X1 income statement?
$36,100 $18,500 $14,800 $14,100
What is the amount of earnings before taxes (EBT) to be reported on ABC Company's 12/31/X1 income statement?
$15,000 $17,800 $12,000 $18,500
4. What is the amount of net income to be reported on ABC Company's 12/31/X1 income statement?
$17,800 $12,000 $14,100 $18,500