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The adjusted trial balance for china tea company at december 31, 2006

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The adjusted trial balance for china tea company at december 31, 2006 The adjusted trial balance for China Tea Company at December 31, 2006 is presented below:   Debit                                        Credit Cash    10,500 Accounts Receivable   150,000 Allowance for uncollectible accounts  10,000 Prepaid rent     5,000 Inventory         25,000 Equipment       300,000 Accumulated depreciation-equipment 125,000 Accounts payable        20,000 Notes payable- due in three months     30,000 Salaries payable                       4,000 Interest payable                       1,000 Capital stock                200,000 Retained earnings        50,000 Sales revenue               400,000 Cost of goods sold       180,000 Salaries expense          120,000 Rent expense               15,000 Depreciation expense  30,000 Interest expense                       2,000 Bad debt expense        2,500   Totals                         840,000                       840,000   a. Prepare a classified balance sheet for China Tea Company as of December 31,2006   b. Prepare an income statement for China Tea Company for the year ended December 31,2006

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