Please do the exercise:

By the end of December 2021, Greta Thunberg, chief accountant of Silence is working to finish his accounting for the year. He realizes that he still needs to prepare the closing entries.

This is the trial balance that he has.

Please answer the questions:

1) Prepare the necessary year-end closing entries.

2) Prepare an Income Statement for the year ended December 31, 2021 .(20 points)

3) Prepare a Statement of Retained Earnings for the year ended December 31, 2021 .(15 points)

4) Prepare a Balance Sheet dated December 31, 2021

5) Does the company appear to be liquid? Show at least 2 ratios and explain. (5 points)

6) Has the company been profitable this year? show at least 2 ratios and explain. Has the company been profitable in the past years? Explain. (5) points)

\begin{tabular}{|l|r|l|} \hline Acapulco Inc. & & \\ \hline Trial Balance dated December 31st year 2021 & Debit & Credit, \\ \hline Cash And Equivalents & 15,56 & \\ \hline Accounts Beceivable & 59,69 & \\ \hline Qther Receivables, & 2,37 & \\ \hline Notes Beceivable & 3,42 & \\ \hline Inventor & 25,13 & \\ \hline Prepaid Expenses & 24,11 & \\ \hline Qther Current Assets, & 15,30 & \\ \hline Gross Property Plant And Equipment & 818,63 & \\ \hline \end{tabular} \begin{tabular}{c|l|l|l} \hline Date & Account Titles and Explanation & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|} \hline Acapulco Inc. & & \\ \hline Trial Balance dated December 31st year 2021 & Debit & Credit, \\ \hline Cash And Equivalents & 15,56 & \\ \hline Accounts Beceivable & 59,69 & \\ \hline Qther Receivables, & 2,37 & \\ \hline Notes Beceivable & 3,42 & \\ \hline Inventor & 25,13 & \\ \hline Prepaid Expenses & 24,11 & \\ \hline Qther Current Assets, & 15,30 & \\ \hline Gross Property Plant And Equipment & 818,63 & \\ \hline \end{tabular} \begin{tabular}{c|l|l|l} \hline Date & Account Titles and Explanation & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}