Trident ACC403 module 2 SLP

We are using the same company as in the first module. However, you need to consider some additional information.One client had indicated that they were interested in purchasing $45,500 worth of products, so the bookkeeper recorded the transaction. However, the client has not actually committed to the purchase.The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2012 and did not adjust ending inventory for the $45,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.Smith Company31-Dec-12Trial Balance (accounts in alphabetical order)DebitCreditAccounts payable67,000Accounts receivable24,500Cash30,000Common stock10,000Depreciation expense24,350Cost of goods sold234,000Equipment (net of depreciation)316,000Insurance1,400Inventory25,000Long-term debt145,000Marketing4,500Paid-in capital90,000Property taxes8,900Rent18,000Retained earnings???Revenues406,000Salaries67,500Utilities6,700Total760,850718,000Prepare an income statement for the company in good format. Also, explain the adjustments separately. Always include the name of the company and the period covered in the title. Don’t forget dollar signs where appropriate. You do not need to include the balance sheet. Consequently, you will not need all the accounts listed above. How does the income or loss compare to the original income statement? Explain the importance of the matching concept.SLP Assignment ExpectationsIt is important to answer the questions as posed. The document should be two to four pages and written in a clear and concise manner or present tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead. The content should be equivalent to the page length suggested for a word processing document.