Refer to the trial balance that follows for Edden Electrical for the year ended April 30, 2021.

Instructions

Use the trial balance to do the following:

a. Prepare an income statement.

b. Prepare a statement of owner?s equity.

c. Prepare a balance sheet.

Taking it further

Edden would like to close the business and retire. He has reviewed the financial statements, and thinks he will be able to take out cash equal to the balance in his capital account. Do you agree? Why or why not?

Transcribed Image Text:

EDDEN ELECTRICAL Trial Balance April 30, 2021 Debit Credit Cash $ 15,425 Accounts receivable Supplies Prepaid insurance Equipment Accounts payable Unearned revenue 13,680 1,150 1,600 48,000 $ 3,085 8,250 N. Edden, capital N. Edden, drawings 27,500 29,500 Service revenue 90,600 Insurance expense 800 Salaries expense Supplies expense 18,000 1,280 $129,435 $129,435