Use the following image(if needed) to answer the question below

If the firm is profitable, then the credits for the income statement accounts on an adjusted trial balance will exceed the debits for the income statement accounts.

o True

o False

1. Force, Inc. has the following unadjusted trial balance at December 31, 2016: Credit Debit $ 15,000 $150,000 $220.000 $ 5.000 $360,000 Account Description Cash Accounts receivable Inventory Prepaid rent Property, plant & equipment Accumulated depreciation Accounts payable Salaries and wages payable Contributed capital Retained earnings Revenue Cost of goods sold Salaries and wages Depreciation expense Utility expense Rental expense Totals $ 60,000 $140,000 $ 5,000 $360,000 $ 50,000 $500,000 $300,000 $ 50,000 $ 15,000 $1,115,000 $1,115,000 a. Use the information below to prepare any adjusting entries at December 31, 2016: i. PP&E has an expected useful life of ten years, and an expected residual value of $60,000. ii. Prepaid rent expires December 31, 2016. iii. Earned and unpaid salaries and wages at December 31, 2016 are $20,000 i) Depreciation expense $30,000 Accumulated depreciation $30,000 ii) Rent expense Prepaid rent $ 5,000 $ 5,000 iii). Salaries and wage expense Salaries and wages payable $20,000 $20,000 b. Prepare an adjusted trial balance for Force Inc. as of December 31, 2016. Account Description Cash Accounts receivable Inventory Prepaid rent Property, plant & equipment Accumulated depreciation Accounts payable Salaries and wages payable Contributed capital Retained earnings Revenue Cost of goods sold Salaries and wages Depreciation expense Utility expense Rent expense Totals Debit Credit $ 15.000 $150,000 $220.000 $ -0- $360,000 $ 90,000 $140,000 $ 25,000 $360,000 $ 50.000 $500,000 $300,000 S 70.000 $ 30.000 $ 15.000 $ 5.000 $1,165.000 $1.165,000 c. Prepare the income statement for Force Inc. for the year ended December 31, 2016. Force Inc. Income Statement for the year ended December 31, 2016 Revenue Cost of goods sold Gross margin $500,000 $300,000 $200,000 Expenses: Salaries and wages Depreciation Utilities Rental Total expenses $70,000 $30,000 $15,000 $5,000 $120.000 Net Income $80,000