Tutors for Rent, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The companys year-end adjusted trial balance dated December 31,

Tutors for Rent, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company’s year-end adjusted trial balance dated December 31, 2011, was:

a. Prepare an income statement and statement of retained earnings for the year ended December 31, 2011. Also prepare the company's balance sheet dated December 31, 2011.
b. Does the company appear to be liquid? Defend your answer.
c. Has the company been profitable in the past? Explain.
 

TUTORS FOR RENT, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, 2011 $ 91,100 4,500 Cash... Accounts receivable Supplies Equipment Accumulated depreciation: equipment. Accounts payable. Income taxes payable. Capital stock.. Retained earnings. 300 12,000 $ 5,000 1,500 3,500 25,000 45,000 Dividends... 2,000 Tutoring revenue eamed Salary expense Supply expense Advertising expense. Depreciation expense: equipment Income taxes expense 96,000 52,000 1,200 300 1,000 11,600 $176,000 $176,000 .