Chapter 5 Homework Saved Help Save & Exit Submi Check my work Affordable Lawn Care, Inc., provides lawn mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31. An adjusted trial balance dated December 31, current year, Tollow eBook References Credits $ 240,000 24,000 3,000 100,000 1,800 AFFORDABLE LAWN CARE, INC. Adjusted Trial Balance December 31, Current Year Debits Cash $ 117,050 Accounts receivable 9,600 Unexpired insurance 16,000 Prepaid rent 6,000 Supplies 2,150 Trucks 300,000 Accumulated depreciation. trucks Mowing equipment 40,000 Accumulated depreciation: mowing equipment Accounts payable Notes payable Salaries payable Interest payable Income taxes payable Unearned moving revenue Capital stock Retained earnings Dividends 10,000 Moving revenue earned Insurance expense 4,800 office rent expense 72.000 Supplies expense 10,400 Salary expense 120,000 Depreciation expensei trucks 60,000 Depreciation expense: nowing equipment 8,000 Repair and maintenance expense 6,000 Fuel expense 3.000 Miscellaneous expense 10,000 Joo 2,100 1,800 40,000 60,000 340,000 3 of 4 !! Next Insurance expense Office rent expense Supplies expense Salary expense Depreciation expensel trucks Depreciation expense: mowing equipment Repair and maintenance expense Fuel expense Miscellaneous expense Interest expense Income taxes expense 4,800 72,000 10,400 120,000 60,000 8,000 6,000 3,000 10,000 6,000 12,000 $ 813,000 $ 813,000 Required: 3-1. Prepare an income statement for the year ended December 31, Current Year. a-2. Prepare a statement of retained earnings for the year ended December 31. Current Year. a-3. Prepare the company's balance sheet dated December 31, Current Year. b. Prepare the necessary year-end closing entries. c. Prepare an after-closing trial balance. d. Using the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity. Complete this question by entering your answers in the tabs below. 17,050 9.600 16,000 6,000 2,150 eBook Cash Accounts receivable Unexpired insurance Prepaid rent Supplies Trucks Accumulated depreciation: trucks Mowing equipment Accumulated depreciation: mowing equipment References $ 300,000 300,000 40,000 490,800 Total assets Liabilities 3,000 100.000 1,800 Accounts payable Notes payable Salaries payable Interest payable Income taxes payable Unearned mowing revenue 300 2,100 1,800 Total liabilities 109,000 Stockholders' equity Capital stock Retained earnings Total stockholders' equity 117,800