Joan Simpson, the owner of City Designs, is selling the business. She offers the trial balance below to prospective buyers.

Your best friend is considering buying City Designs. She seeks your advice in interpreting this information. Specifically, she asks whether this trial balance is the same as a balance sheet and an income statement. She also wonders whether City Designs is a sound company. She thinks it must be because the accounts are in balance.
Required
Write a short note to answer your friend's questions. To aid her decision, state how she can use the information on the trial balance to compute the City Designs net income or net loss for the current period. State the amount of net income or net loss in your note.

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CITY DESIGNS Trial Balance December 31, 2014 $ 36,000 Cash Accounts receivable 10,000 Prepaid expenses 4,000 78,000 Land $ 72,000 Accounts payable Note payable Joan Simpson, capital Joan Simpson, withdrawals 44,000 76,000 30,000 Service revenue 120,000 Advertising expense Rent expense Supplies expense Wages expense Total 16,000 24,000 18,000 96,000 $312,000 $312,000