P3-6B The adjusted trial balance of Marineland Travel Designers at December 31, 20X6. follows. MARINELAND TRAVEL DESIGNERS Adjusted Trial Balance December 31, 20X6 Cash $ 1.320 Accounts receivable. 4,920 Supplies. 2.300 Prepaid rent 1.600 Office equipment. 20,180 Accumulated depreciation-office equipment $ 4.350 Office furniture. 37,710 Accumulated depreciation-office furniture. 4.870 Accounts payable... 4.740 Interest payable 830 Unearned service revenue. 620 Note payable... 13.500 Ken Sorley, capital. 26,090 Ken Sorley, withdrawals... 29,000 Service revenue. 120.910 Depreciation expense-office equipment. 6,680 Depreciation expense-office furniture. 2.370 Salary expense.... 39,900 Rent expense 17.400 Interest expense Utilities expense Insurance expense Supplies expense Total.... 3,100 2,670 3,810 2.950 $175.910 $175,910 Required 1. Prepare Marineland's 20X6 income statement and statement of owner's equity and year- end 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.

a. Which linancial statement reports Marineland's results of operations? Were opera- tions successful during 20X6? Cite specifics from the financial statements to support your evaluation.

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