The trial balance of Luxury Specialties, Inc. follows. (Click the icon to view the trial balance.) Alyssa Rose, your best friend, is considering investing in Luxury Specialties, Inc. Alyssa seeks your advice in interpreting this information. Specifically, she asks how to use this trial balance to compute the company's total assets, total liabilities, and net income or net loss for the year. Requirement Write a short note to answer Alyssa's questions. In your note, state the amounts of Luxury Specialties' total assets, total liabilities, and net income or net loss for the year. Also, show how you computed each amount. 1. Begin the following note to answer your friend's questions: Dear Alyssa, This trial balance lists the of the company, along with their al December 31, 20X5. The trial balance provides the data for computing Select the labels and compute the total assets. (Leave unused cells blank.) Accounts Amounts Total assets Next, select the labels and compute the total liabilities. (Leave unused cells blank.) Accounts Amounts Total assets Next, select the labels and compute the total liabilities. (Leave unused cells blank.) Accounts Amounts Total liabilities Finally, select the formula used to calculate the net income or net loss and compute. (Use parentheses or a minus sign when entering a net loss.) II Net income (net loss) II The trial balance of Luxury Specialties, Inc. follows. (Click the icon to view the trial balance.) Alyssa Rose, your best friend, is considering investing in Luxury Specialties, Inc. Alyssa seeks your advice in interpreting this information. Specifically, she asks how to use this trial balance to compute the company's total assets, total liabilities, and net income or net loss for the year. Requirement Write a short note to answer Alyssa's questions. In your note, state the amounts of Luxury Specialties' total assets, total liabilities, and net income or net loss for the year. Also, show how you computed each amount. 1. Begin the following note to answer your friend's questions: Dear Alyssa, This trial balance lists the of the company, along with their al December 31, 20X5. The trial balance provides the data for computing Select the labels and compute the total assets. (Leave unused cells blank.) Accounts Amounts Total assets Next, select the labels and compute the total liabilities. (Leave unused cells blank.) Accounts Amounts Total assets Next, select the labels and compute the total liabilities. (Leave unused cells blank.) Accounts Amounts Total liabilities Finally, select the formula used to calculate the net income or net loss and compute. (Use parentheses or a minus sign when entering a net loss.) II Net income (net loss)
