The adjusted trial balance for Michaelis Company is shown below. Michaelis uses the periodic inventory system.
Inventory on December 31, 2019, was $306,000.
Required:
a. Without preparing a formal income statement, calculate the net income or loss for the year.
b. What amount of retained earnings would appear on the December 31, 2019 balance sheet?

Question

The adjusted trial balance for Michaelis Company is shown below. Michaelis uses the periodic inventory system.
  Inventory on December 31, 2019, was $306,000.
Required:
a. Without preparing a formal income statement, calculate the net income or loss for the year.
b. What amount of retained earnings would appear on the December 31, 2019 balance sheet?

Quizplus · Accepted Answer

The Answer of The adjusted trial balance for Michaelis Company is shown below. Michaelis uses the periodic inventory system.
  Inventory on December 31, 2019, was $306,000.
Required:
a. Without preparing a formal income statement, calculate the net income or loss for the year.
b. What amount of retained earnings would appear on the December 31, 2019 balance sheet?

The Adjusted Trial Balance for Michaelis Company Is Shown Below