Trial balance : A trial balance is the summary of all the ledger accounts. The trial balance is prepared to check the total balance of the debit column with the total balance of the credit column, which must be equal. The trial balance is usually prepared to check accuracy of ledger balances, and before the preparation of financial statements. Adjusted trial balance: The adjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts after making all adjusting journal entries. Income statement: An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues. Net income = Total revenues – Total expenses To prepare: An income statement for the year 2017 for Company L.

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Chapter 4, Problem 4.10BE

To determine

Trial balance:

A trial balance is the summary of all the ledger accounts. The trial balance is prepared to check the total balance of the debit column with the total balance of the credit column, which must be equal. The trial balance is usually prepared to check accuracy of ledger balances, and before the preparation of financial statements.

Adjusted trial balance:

The adjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts after making all adjusting journal entries.

Income statement:

An income statement is one of the financial statements which shows the revenues, and expenses of the company. The income statement is prepared to ascertain the net income/loss of the company, by deducting the expenses from the revenues.

Net income = Total revenues – Total expenses

To prepare: An income statement for the year 2017 for Company L.

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