Below are the financial accounts of Landscape Design, Inc. The company has just completed its third year of operations ended November 30, 20x8.

Required 1. Prepare the income statement, statement of retained earnings, and balance sheet for Landscape Design, Inc.
2. User insight: Evaluate the company’s ability to meet its bills when they come due.
Preparation and Interpretation of Financial Statements

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Accounts Accounts Payable Cash Common Stock Receivable $ 9,100 7,400 115,750 15,000 Dividends 40,000 Income Taxes Expense 38,850 Income Taxes Payable 13,000 Marketing Expense 19,700 Design Service Revenue 248,000 Office Rent Expense 18,200 Retained Earnings, November 30, 20x7 55,400 Salaries Expense 96,000 Salaries Payable 2,700 Supplies Supplies Expense 800 3,100