The owners of Opera Tours Inc. are selling the business. They offer the trial balance that appears at the top of the next page to prospective buyers.
Your best friend is considering buying Opera Tours. She seeks your advice in interpreting this information. Specifically, she would like to know how this information gets converted into a balance sheet and income statement and would like to see these statements for Opera Tours Inc. for the 2020 fiscal year.
{Requirement}
Write a memo to answer your friend's questions

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1 Accounts receivable A Opera Tours Inc. Trial Balance December 31, 2020 B C $ 12.000 45,000 4,000 231,000 2 Cash 3 4 Prepaid expenses 5 Equipment 6 Accounts payable 7 Note payable 8 Common shares 9 Retained earnings 10 Service revenue 11 Salary expense 12 Tour expenses 13 Rent expense 14 Advertising expense 15 Total 16 $ 105,000 92,000 30,000 32.000 139,000 69,000 26,000. 7,000 4,000 $ 398,000 $ 398,000