LOS-1, LO5-2, LO5-61 EXERCISE 5.3. Financial Statement Preparation Wilderness Guide Services, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company's year-end adjusted trial balance dated December 31, current year, is as follows. WILDERNESS GUIDE SERVICES, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR $ 12,200 31,000. 7,900 2,400 70,000 Cash.. Accounts receivable. Camping supplies.. Unexpired insurance policies. Equipment Accumulated depreciation: equipment. Notes payable (due 4/1/next year). Accounts payable Capital stock Retained earnings. Dividends.. Guide revenue earned. Salary expense Camping supply expense Insurance expense. Depreciation expense: equipment.. Interest expense.. $ 60,000 18,000 9,500 25,000 15,000 1,000 102,000 87,500 1,200 9,600 5,000 1,700 $229,500 $229.500 a. Prepare an income statement and statement of retained earnings for the year ended December 31, current year. Also prepare the company's balance sheet dated December 31, current year. (Hint: Unprofitable companies have no income taxes expense.) b. Does the company appear to be liquid? Defend your answer. C. Has the company been profitable in the past? Explain. ries Trial balance has increased or decreased subsequent to Refer to the adjusted trial balance of Wilderness Guide Services, Inc., illustrated in Exercise 5.3 to respond to the following items. a. Prepare all necessary closing entries at December 31, current year. b. Prepare an after-closing trial balance dated December 31, current year. C. Compare the Retained Earnings balance reported in the after-closing trial balance prepared in part b to the balance reported in the adjusted trial balance. Explain why the two balances are different. (Include in your explanation why the balance reported in the after-closing trial balance has increased or decreased subsequent to the closing process.) financial statements of