This assignment is based on Exercise M3-21, textbook page 131

You are required to prepare the following:

1) a statement of retained earnings and

2) a balance sheet

Prepare the statements using the Excel template attached. (Please answer using the excel format as seen on the image attached.) I will just transfer it to my excel.

And also, the format to be used in excel is based on Exhibit 1.4 (as seen on the image attached).

appears at the bottom. EXHIBIT 1.4 Statement of Retained Earnings NOODLECAKE STUDIOS, INC. Statement of Retained Eamings (Projected) For the Month Ended September 30, 2021 Retained Earnings, September 1, 2021 Add: Net Income Subtract: Dividends Retained Earning, September 30, 2021 Who Name of the business What: Title of the statement Wher: Accounting period Explanation Last period's ending Retained Earnin gs balance Reported on the inoome staement (Exhibit 1.3) Distributions to stockholders in the current period This period's ending Retained Earnings balance CHAPTER 3 The Income Statement 131 M3-21 Preparing Financial Statements from a Trial Balance The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding kssons, as of December 31. Required: Using the unadjusted trial balance provided, create a classified Balance Sheet, Statement of Retained Earnings, and Income Statement for Equilibrium Riding, Inc., for the year ended December 31 . (These financial statements would be considered "preliminary" because they use unadjusted balances.) TIP: Create the Income Statement first, followed by the Statement of Retained Earnings, and finally the classified Balance Sheet. Follow the formats presented in Exhibits 1.3, 1.4, and 2.13. M3-22 Preparing an Income Statementand Calculating Net Profit Margin For each of the following items in Old Time Cable, Inc.'s financial statements, indicate (1) whether it is reported in the income statement (V/S) or balance sheet (B/S) and (2) whether it is an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E) account. The first item is given as an example. \begin{tabular}{l|c|c|c} \hline \multicolumn{2}{l|}{ Item } & (1) Statement & (2) Account Type \\ \hline Example. Cash & $880 & B/S & A \\ \hline 1. Service Revenue & 5,500 & & \\ \hline 2. Accounts Receivable & 900 & & \\ \hline 3. Interest Expense & 380 & & \\ \hline 4. Deferred Revenue & 200 & & \\ \hline 5. Income Tax Expense & 250 & & \\ \hline 6. Retained Earrings & 120 & & \end{tabular} Old Time Cable also reported \$4,340 in operating expenses. Based on the available information, determine the company's net profit margin expressed as a percent (to one decimal place). Lo 3-1, 3-4 Lo 3-1, 3-4