The adjusted trial balance of Snyder Piano Tuning Service at December 31, 2007 , follows.

Requirements 1. Prepare the 2007 income statement, statement of owner's equity; and year-end balance sheet of Snyder Piano Tuning Service. 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.

a. Which financial statement reports the company's results of operations? Were operations successful during 2007? Cite specifics from the financial statements to support your evaluation. 

b. Which statement reports the company's financial position? Does its financial position look strong or weak? Give the reason for your evaluation.

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SNYDER PIANO TUNING SERVICE Adjusted Trial Balance December 31, 2007 Account Title Cash Accounts receivable Adjusted Trial Balance Debit Credit S 8,300 4,900 Supplies Prepaid rent Equipment Accumulated depreciation Accounts payable Unearned service revenue 2,300 1,600 7.700 $ 4,900 4,500 600 Dot Snyder, capital 3,000 Dot Snyder, withdrawals 29,000 Service revenue 66,000 Depreciation expense 2,300 Rent expense 17,400 Utilities expense 2,600 Supplies expense 2,900 Total $79.000 $79,000