The accounts of Highland Consulting, Inc., follow with their normal balances at August 31, 2010. The accounts are listed in no particular order.

Requirements 1. Prepare the company’s trial balance at August 31,2010, listing accounts in the proper order. List the largest expense first, the second-largest expense next, and so on.
2. Prepare the financial statements: income statement, statement of retained earnings, and balance sheet. The retained earnings balance of $13,600 is the beginning balance for the year; it has not been updated for the current year’s net income or loss.
3. Was it a profitable year for Highland Consulting, Inc.? Why or why not?

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Account Balance Common Stock.......... $107,700 Insurance Expense....... 1,300 Accounts Payable.......... 4,000 Service Revenue...... 86,500 Land.................... 89,000 Supplies Expense....... 3,100 Cash............... 9,200 Salary Expense....... 56,000 Building........... 91,000 Rent Expense......... 8,700 Dividends........ 10,000 Utilities Expense. 5,400 Retained Earnings... 13,600 Accounts Receivable........ 5,500 Notes Payable......... 68,000 Supplies........ 600