Reference no: EM131865727

Problem - The following account balances were taken from ABC Company's unadjusted trial balance at December 31, 2019:

Accounts Payable ............ $58,000

Accounts Receivable ......... $64,000

Advertising Expense ......... $14,000

Building .................... $63,000

Cash ........................ $30,000

Common Stock ................ $94,000

Cost of Goods Sold .......... $45,000

Dividends ................... $12,000

Equipment ................... $68,000

Income Tax Expense .......... $17,000

Interest Revenue ............ $36,000
Inventory ................... $62,000

Notes Payable ............... $81,000

Rent Expense ................ $10,000

Retained Earnings ........... $40,000 (at January 1, 2019)

Sales Revenue ............... $99,000

Trademark ................... $50,000

Unearned Revenue ............ $27,000

ABC Company has not yet recorded adjusting entries related to the following two items:

(1) The note payable in the unadjusted trial balance was a 14%, 10-month bank loan taken out on June 1, 2019.

(2) The unearned revenue relates to a $27,000 payment from a customer received on May 1, 2019 for work to be performed each month for the next 18 months.

Calculate the net income reported by ABC Company for 2019 after the appropriate adjusting entries have been recorded and posted.