Debit Doctors, Inc., provides accounting advice over the Internet. In recent years the company has experienced severe financial difficulty. Its accountant prepares adjusting entries on a monthly basis and closing entries on an annual basis at December 31. An adjusted trial balance dated December 31, current year, follows.

Instructions
a. Prepare an income statement and statement of retained earnings for the year ended December 31, current year. Also prepare the company's balance sheet dated December 31, current year.
b. Prepare the necessary year-end closing entries.
c. Prepare an after-closing trial balance.
d. Using the financial statements prepared in part a, briefly evaluate the company's performance.
e. Identify information that the company is apt to disclose in the notes that accompany the financial statements prepared in part a.

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DEBIT DOCTORS, INC ADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Debits Credits 900 $ 6,600 7,100 24,000 2,100 170 Salaries payable Unearned client revenue Capital stock. Client revenue earned 6,700 Supplies expense Internet service expense. 2700 4,300 $103,270 $103,270 Miscelaneous expense