Presented below is the trial balance of Oakridge Ltd. at December 31, 2027.

Oakridge Ltd. Trial Balance December 31, 2027
	Debit	Credit
Purchase Discounts		12,000
Cash	227,640
Accounts Receivable	126,000
Rent Revenue		21,600
Retained Earnings		192,000
Salaries and Wages Payable		21,600
Sales Revenue		1,320,000
Notes Receivable	132,000
Accounts Payable		58,800
Accumulated Depreciation - Equipment		33,600
Sales Discounts	17,400
Sales Returns and Allowances	21,000
Notes Payable		84,000
Selling Expenses	278,400
Administrative Expenses	118,800
Share Capital - Ordinary		360,000
Income Tax Expense	64,680
Cash Dividends	54,000
Allowance for Doubtful Accounts		6,000
Supplies	16,800
Freight-In	24,000
Land	84,000
Equipment	168,000
Bonds Payable		120,000
Gain on Sale of Land		36,000
Accumulated Depreciation - Buildings		23,520
Inventory	106,800
Buildings	117,600
Purchases	732,000	______
Totals	2,289,120	2,289,120

A physical count of inventory on December 31 resulted in an inventory amount of $76,800; thus cost of goods sold for 2027 is $774,000.

Instructions: Prepare an Income Statement. Assume that thirty thousand ordinary shares were outstanding during the year.

Income Statement

Practise income statement challenges