Reference no: EM132481468
The following account balances were taken from ABC Company's unadjusted trial balance at December 31, 2021:
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, 2021)
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:
Point (1) The note payable in the unadjusted trial balance was a 16%, 10-month bank loan taken out on May 1, 2021.
Point (2) The unearned revenue relates to a $27,000 payment from a customer received on June 1, 2021 for work to be performed each month for the next 18 months.
Question 1: Calculate the net income reported by ABC Company for 2021 after the appropriate adjusting entries have been recorded and posted.