Credits Dobits $ 117,050 9,600 16,000 6,000 2,150 300,000 $ 240,000 40,000 Cash Accounts receivable Unexpired insurance Prepaid rent Supplies Trucks Accumulated depreciation: trucks Mowing equipment Accumulated depreciation: mowing equipment Accounts payable Notes payable Salarios payable Interest payable Income taxes payable Unearhed mowing revenue Capital stock Retained earnings Dividends Mowing revenue earned Insurance expense office rent expense Supplies expense Salary expenso Depreciation expense trucks Depreciation expense: mowing equipment Repair and maintenance expense Fuel expense Miscellaneous expense Interest expense Income taxes expense 24,000 3,000 100,000 1,800 300 2,100 1,800 40,000 60,000 10,000 340,000 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 Drou 1 of 2 NAV > Required: a-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. Req A1 Req A2 Req A3 ReqB Reqc Reg D Prepare an income statement for the year ended December 31, current year. AFFORDABLE LAWN CARE, INC. Income Statement For the Year Ended December 31, Current Yoar Revenues: Expenses: AFFORDABLE LAWN CARE, INC. Income Statement For the Year Ended December 31, Current Year Revenues: Expenses: D $ 0 $ $ 0 Complete this question by entering your answers in the tabs below. Reg A1 Req AZ Req A3 Reg B Reqc Reg D nts Prepare a statement of retained earnings for the year ended December 31, current year. eBook Print AFFORDABLE LAWN CARE, INC. Statement of Retained Earnings For the Year Ended December 31, Current Year Retained earnings (1/1/Current Year) Ceferences Retained earnings (12/31/Current Year) $ 0 Req A1 Reg A3 > INC Balance Sheet December 31, Current Year Assets 2.5 points eBook Print References Trucks 0 Mowing equipment 0 0 Total assets Liabilities Mc Journal entry worksheet 1 2 3 4 Record the entry to close the revenue account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general Journal AFFORDABLE LAWN CARE, INC. After-Closing Trial Balance December 31, Current Year Debits Credits 5 Heck my wor Reg A1 Reg A2 Req A3 Red B Reqc Req on Using the financial statements prepared in part a briefly evaluate the company's profitability and liquidity. (Round your percentage answers to 13 .1234 should be entered as 12.3)) For the year ended December 31, Current Year, the company generated net income of Thus, net income as a percentage of salon was approximately %. Moreover, the profit represented a return on average stockholders equity of approximately %, which is a fairly strong retum on investment. The company's balance sheet at December 31, Current Yout, reports cash and accounts receivable totaling It also reports various payables liabilities) totaling Depending on when the note payable topotted in the balance sheet is due, the company may be extremely liquid. If this obligation is not cue in the near future, the company has in cash and accounts receivable to cover oftigation of only Moreover, of the of obligations, the Unearned Mowing Revenue amount will not require a cash outlay. Even if this nato is due shortly, the company still appears to be liquid