E 3-24A

Delicious Hams, Inc.
Income Statement
Year Ended December 31, 20X6
Thousands
Revenues:
Sales revenue………………... $41,400

Expenses:
Cost of goods sold………….. $25,100
Selling, administrative, and
general expense………….. 10,700
Total expenses…………. 35,800
Income before tax……………… 5,600
Income tax expense……………. 2,300
Net income………………………. $ 3,300

Delicious Hams, Inc.
Statement of Changes in Equity
Year Ended December 31, 20X6
Thousands
Total equity, January 1, 20X6…………….. $ 9,400
Add: Net income …………………………. 3,300
12,700
Less: Dividends……………………………. (1,500)
Total equity, December 31, 20X6………. $11,200

600 Inventories…………………….600 . 2.300 Retained earnings……… 6. 9.300) 4.400 Prop. 20X6 Thousands ASSETS LIABILITIES Cash……………………………. plant & equip.500 Income tax payable……. $ 3.700 Other assets…………………. $21. Inc.600 Accounts receivable………… 1. 1. $ 6.. (2.100 Other liabilities………….700 Total liabilities…………..200 Total liabilities and Total assets…………………… $21.. 4.800 Accounts payable……… $ 7.500 SHAREHOLDERS’ Less: Accum.500 Total shareholders’ equity 11....200 Prepaid expenses…………….200 Share capital…………... EQUITY deprec……. 10.. Balance Sheet December 31. 1.600 shareholders’ equity. (continue) E 3-24A Delicious Hams.

20.000 Closing Entries 3 Service Revenue……………………………. 3 Unearned Service Revenue………………...100 − $13.. 400 1 Accumulated Depreciation…………….600).600)……….... E 3-29A Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Adjusting Entries Dec..….100 . 1.000 1 Income Tax Payable…………………….100 − $4.000)…………. 500 3 Rent Expense ($1. 6.500 1 Service Revenue ($20. 400 3 Income Tax Expense ($1. 500 1 Salary Payable………………………. 300 1 Prepaid Rent……………………………… 300 3 Depreciation Expense ($400 − $0)………. 1.500 3 Salary Expense ($5. 6.000 − $0)……….300 − $1.10 1 0 Retained Earnings……………………….. 20...

7..300 ..100 Rent Expense……………………………... 1.800 1 Salary Expense………………………….300 Depreciation 400 Expense………………….300 1 Dividends……………………………. Income Tax Expense……………………. 1.000 3 Retained Earnings………………………….…… 1.... 1.3 Retained Earnings…………………………. 5.