Below is the adjusted trial balance for Destiny Inc. below as of December 31, 2020.

Destiny Inc.

Adjusted Trial Balance

December 31, 20120

Debit Credit

Cash $62,500

Accounts receivable 40,200

Supplies 550

Prepaid insurance 820

Equipment 36,000

Accumulated depreciation-equipment $8,800

Accounts payable 6,500

Unearned service revenue 15,700

Salary payable 42,650

Common shares 23,295

Retained earnings 10,000

Dividends 8,000

Service revenue 82,200

Salary expense 32,850

Supplies expense 3,200

Insurance expense 800

Depreciation expense-equipment 925

Utilities expense 3,300 ________

$189,145 $189,145

1. Prepare an income statement for the year ended December 31, 2020. (10 marks)

2. Prepare a statement of retained earnings for year ended December 31, 2020. (10 marks)

3. Calculate the current ratio. What does it measure? (5 mark)