Prepare a trial balance, income statement, statement of retained earnings, and balance sheet (Learning Objective 4) 20–25 min.

The accounts of Baker Consulting, Inc., follow with their normal balances at December 31, 2014. The accounts are listed in no particular order.

Requirements 1. Prepare the company’s trial balance at December 31, 2014, listing accounts in the proper order. List the largest expense first, the second-largest expense next, and so on.
2. Prepare the year-end financial statements: income statement, statement of retained earnings, and balance sheet. The retained earnings balance of $12,320 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 Baker Consulting, Inc.? Why or why not?AppendixLO1

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Account Balance Common Stock....... $120,000 Insurance Expense. 5,300 Accounts Payable........ 4,100 Service Revenue 101,700 Land............... 82,000 Supplies Expense. 1,840 Cash............. 9,120 Salaries Expense........ 48,750 Building............. 135,000 Rent Expense. 11,340 Dividends.......... 15,000 Utilities Expense. 6,750 Retained Earnings...... 12,320 Accounts Receivable..... 7,370 Notes Payable 85,000 Supplies.... 650