Instructions a. Prepare an income statement and statement of retained earnings for the year ended December 31, 2011. Also prepare the companys balance sheet dated December 31, 2011. (Hint: The company incurred no income taxes expense in 2011.) 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 companys performance. e. Identify information that the company is apt to disclose in the notes that accompany the financial statements prepared in part a.

Myste Masters, Inc., provides fontanelling services over the Internet. In puty has experienced severe financial dimiculty. T a nt pres m y husis, and desing entries on December 11 An f de December 31, 2011, follows the sings on a a ce MYSTIC MASTERS INC ADJUSTED TRIAL BALANCE DECEMBER 31, 2011 Debit Credits Preparant S . Furniture and w as Arumualad diaracetarta ndirture Accounts payable Notes pays Sa payable Interest payable.... Und controvun Capital stock Ratained Garnings Controvne samad.... Insurances Oteront axponse Supplies a ponse Salary pense Depreciation perisa tumiture and dures Office and to phone sponse nord expense Lagal mense ............. Interest pense Micus ponse Triini 48.000 105.800 906,500 Instructions 31, 2011 Ale propue s como con Prepare the year and desi lance sheet and December 31, 2011. Hit The 2011) r es d. Using the financial statements prepared in part a briefly evaluate the company's performance .. Iamily information that the company is apt to disclose in the notes that accompany the finan claimers din parta