Problem 4.2 Making financial statements Evi Sakai is finance manager for Land Monitrix. They use satellite technology and mapping software to alert their customers to trespassing, illegal dumping, and other encroachments on property around the globe. Customers purchase one-year contracts for this service, and the pricing depends on the number and size of sites monitored. Ms. Sakai needs the financial statements: An income statement, statement of retained earnings, and balance sheet. Prepare them from the given adjusted trial balance. (She needs this information only internally and does not require a fully classified balance sheet.) LAND MONITRIX CORPORATION Adjusted Trial Balance As of December 31, 20X5 Credits $ Debits 834.221 345.909 45.787 66.665 3.009.000 Cash Accounts receivable Prepaid expenses Supplies Satellite equipment Accumulated depreciation Accounts payable Unearned revenues Loan payable Capital stock Retained earnings, Jan. 1 Dividends Revenues Selling expenses Interest expense Salaries expense Maintenance and supplies expense Depreciation expense 1.222.199 544.190 455.000 1.000.000 560.000 228.892 50.000 2.373.402 476.445 80.000 677 667 222.989 575.000 $ 6.383.683 $ 6.383.683 LAND MONITRIX CORPORATION Income Statement Revenues Services to customers Expenses Net income LAND MONITRIX CORPORATION Statement of Retained Earnings Beginning retained earnings Plus: Net Income $ LAND MONITRIX CORPORATION Balance Sheet Assets Satellite equipment Less: Accumulated depreciation Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total Liabilities and equity