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

Requirements 1. Prepare the company’s trial balance at December 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 $9,700 is the beginning balance for the year; it has not been updated for the current year’s income or loss.
3. Was it a profitable year for Cascade Consulting, Inc.? Why or why not?

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Account Common Stock.................... Balance $ 65,000 Insurance Expense......... 1,700 Accounts Payable........ Service Revenue........ Land.................. Supplies Expense Cash.............. Salary Expense... Building............ Rent Expense...... Dividends....... 3,700 83,000 24,000 2,800 8,300 51,000 110,000 12,800 13,500 Utilities Expense..... 6,400 Retained Earnings 9,700 Accounts Receivable......... 6,500 Notes Payable....... 76,000 Supplies....... 400