The adjusted trial balance of Sunkist Travel Designers, Inc., at December 31, 19X6, follows at the top of page 125 .

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1. Prepare Sunkist's 19X6 income statement, statement of retained earnings, and balance sheet. List expenses in decreasing order on the income statement and show total liabilities on the balance sheet. Draw arrows linking the three financial statements.

2. How will what you learned in this problem help you manage a business?

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SUNKIST TRAVEL DESIGNERS, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, 19X6 Cash $ 1,320 Accounts receivable 8,920 Supplies.... 2,300 Prepaid rent. 1,600 Office equipment.. 20,180 Accumulated depreciation-office equipment. $ 4,350 Office furniture..... 17,710 Accumulated depreciation- office furniture 4,870 Accounts payable 3,640 Property tax payable 1,100 Interest payable... 830 Uncarned service revenue. 620 Note payable.. 25,500 Common stock 5,000 Retained earnings. 1,090 Dividends. +4,000 Service revenue 127,910 Depreciation expense-office equipment.. 6,680 Depreciation expense-office furniture 2,370 Salary expense. 39,900 Rent expense..... Interest expense Utilities expense Insurance expense. Supplies expense. Total.. 17,400 3,100 2,670 3,810 2,950 $174,910 $174,910