Question 5 (22 marks) The adjusted trial balance of Palm Realtors Ltd. at December 31, 2019, appears below: Palm Realtors Ltd. Adjusted Trial Balance December 31, 2019 $ 8,950 53,530 2,200 45,690 Cash Accounts receivable Prepaid rent Equipment Accumulated amortization Accounts payable Interest payable Salary payable Income tax payable Note payable (due 2025) Common shares Retained earnings Dividends Commissions Depreciation expense Salary expense Rent expense Interest expense Income tax expense Total $ 18,930 15,900 900 3,500 4,700 19,500 8,000 29,325 30,000 227,480 6,260 140,500 26,400 1,500 13,205 $328,235 $328,235 Required: 1. Prepare in good form a single step statement of earnings (income statement) of Palm Realtors Ltd. for the year ended December 31, 2019. (6 marks) Palm Realtors Ltd. Statement of Earnings For the Year Ended December 31, 2019 Question 5 (Continued) 2. Prepare in good form a statement of retained earnings of Palm Realtors Ltd. for the year ended December 31, 2019. (3 marks) Palm Realtors Ltd. Statement of Retained Earnings For the Year Ended December 31, 2019 3. Prepare in good form a classified statement of financial position for Palm Realtors Ltd as at December 31, 2019, by completing the table below. (10 Marks) Palm Realtors Ltd. Statement of Financial Position As at December 31, 2019 ASSETS LIABILITIES Current asscts: Current Liabilities: Total liabilities SHAREHOLDERS' EQUITY Total assets Total liabilities and shareholder's equity 7 Question 5 (Continued) 4. Compute the current ratio for Palm Realtors Ltd for 2019. Did the company appear to be able to meet its short-term obligations as they come due? Why? (3marks) Current Ratio =