Wilderness Guide Services, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company's year- end adjusted trial balance dated
Wilderness Guide Services, 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, current year, is as follows. WILDERNESS GUIDE SERVICES, INC. Check my wor Cash Accounts receivable Camping supplies Unexpired insurance policies Adjusted Trial Balance December 31, Current Year $ 12,200 31,000 7,900 2,400 70,000 $ 60,000 18,000 Equipment Accumulated depreciation: equipment Notes payable (due 4/1/next year) Accounts payable Capital stock Retained earnings Dividends Guide revenue earned Salary expense Camping supply expense Insurance expense Depreciation expense: equipment Interest expense 9,500 25,000 15,000 1,000 102,000 87,500 1,200 9,600 5,000 1,700 $ 229,500 $229,500 (Hint: Unprofitable companies have no income taxes expense.) a-1. Prepare an income statement for the year ended December 31, current year. a-2. Prepare a statement of retained earnings for the year ended December 31, current year. a-3. Prepare the company's balance sheet dated December 31, current year. b. Does the company appear to be liquid?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started