The following are list of various accounts with their balances.

Based on the accounts you are

requite=red to prepare a the following:
1. Trial Balance
2. Balance Sheet and
3. Income Statement

(1)
Accounts Classification Balances Trial Balance
Debit Credit

Cash Asset 10,000 10,000

Account Receivable Asset 5,000 5,000

Inventory Asset 7,500 7,500

Prepaid expenses Asset 2,000 2,000

Property, Plant and Asset 50,000 50,000

Equipment

Accumulated liability 5,000 5,000

Depreciation

Accounts Payable liability 6,000 6,000

Salaries payable liability 2,500 2,500

Notes payable liability 10,000 10,000

Common Stock liability 20,000 20,000

Retained Earnings liability 15,000 15,000

Sales Revenue Income 40,000 40,000
Cost of Goods Sold expenses 15,000 15,000
Salaries Expense expenses 3,500 3,500
Rent Expense expenses 1,000 1,000
Utilities Expense expenses 1,000 1,000
Depreciation Expense expenses 2,500 2,500
Interest Expense expenses 1,000 1,000
Total P98,500 P98,500
 (2)
X Company
Income Statement
For the Year Ended December 31, 2022

Sales Revenue 40,000

Less: Cost of Sales 15,000
Gross Profit 25,000
Less Expenses:
Salaries Expenses P 3,500
Rent Expense 1,000
Utilities Expense 1,000
Depreciation 2,500
Interest Expense 1,000 9,000
Net Income P 16,000 *
========

(3)
X Company
Balance Sheet
December 31, 2022

ASSETS
Current Assets
Cash P 10,000
Accounts Receivable 5,000
Inventory 7,500
Prepaid Expenses 2,000

Fixed Assets
Property Plant & Equipment 50,000
Less Accumulated Depreciation 5,000 45,000

Total Assets P69,500

========
LIABILITIES & STOCKHOLDERS EQUITY

Liabilities P18,500

Stockholders equity
Common stock 20,000
Retained P15,000
Add net Income : 16,000 * 31,000
Total Liabilities & Stockholders equity P69,500
=======
Note:
The P16,000 * net income is transferred to the balance sheet. This means that when you prepare the
financial statement, you must first prepare the income statement and then forward the figure to the
balance sheet under Stockholders or owners equity, as shown above.