Affordable Lawn Care, inc.I provides lawn-mowing services to both commercial and residential customers. The companyr performs adjusting entries on a n'rorrtl'rljvr basis, whereas closing entries are prepared annuallyr at December 31 . An adjusted trial balance dated December 31. 2015, follows. AFFDRDABLE LAWN CARE, INC. Adjusted Trial Balance December 2015, 31 Debits Credits Cash $ 11?,050 Accounts receivable 0.600 Unexpired insurance 15,000 Prepaid rent 6,000 Supplies 2,150 Tmcks 300,000 Accumulated depreciation: trucks $ 240,000 Mowing equipment 40,000 Accumulated depreciation: mowing equipment 24.000 Accounts pavable 3.000 Notes pavable 100.000 Salaries payable 1.000 Interest pavable 300 income taxes pavable 2,100 Uneamed mowing revenue 1.000 Capital stock 40,000 Retained earnings 60,000 Dividends 10,000 Mowing revenue earned 340,000 Insurance expense 45.000 Ofce rent expense H.000 Supplies expense 10,400 Saiarv expense 120,000 Depreciation expense: trucks 50.000 Depreciation expense: mowing equipment 0,000 Repair and maintenance expense 6,000 Fuei expense 3,000 Miscellaneous expense 10,000 Interest expense 6,000 Income taxes expense 12,000 $ 813.000 $ 313.000 a-'l . Prepare an income statement fer the year ended December 31. 201 5. Expenses: s-S. Prepare the company's belanoe sheet dated December 31. 2015. (Amounts to be deducted should be Indicated by a minus slam] Assets: Trucks 0 Mowing equipment 0 Total assets 0 Liabilities: Total liabilities 5 D Stockholders' equity: Total stockholders' eqtu 0 Total liabilities and stockholders' equity 5 D b. Prepare the necessary year-end closing entries. [If no entry is requlred for e treneectlonlevent. select \"Nu journal entry requlred" In the rst account eld.) Jaurnal Entry Warksheet Q n E] E] *Enter debil before credits E @ h. Prepare the necessary year-end closing entries. [If no entry is requlred for e treneectlonievent. select \"Nu jcumel entryI requlred\" In the rst account eld.) Journal Entry Worksheet @ E] E E] E] *Enter debits before credit b. Prepare the neeeeeery year-end closing entries. (If no entry is required for a tranaactlcnievent. select \"Ne qumel entryI required\" In the rst account eld.) Journal Elm-y worksheet Q E Q E E Record the entry to transfer net income earned in 2015 to the retained earnings account. *Enter debits before credits E (El h. Prepare the necessary year-end closing entries. [If no entry is required for a transactlcnievent. select "Ne jcumel entry required\" In the rst account eld.) Miter-laden Illt view general leurr Journal Entry Worksheet Q E] E] E] a Record the entry to transfer dividends dealared in 2015 to the retained earnings account. *Enter debits before credii E @ \fd. Using the ne nciai statements prepared in part a, brieyr evaluate the companfe protability and liquidity. (Round your percentage answers to 1 decimal place (Le. .1234 should be entered as 12.3)]
