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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,
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. Adjusted Trial Balance December 31, Current Year Cash Accounts receivable $ 12,200 31,000 Camping supplies 7,900 Unexpired insurance policies 2,400 Equipment 70,000 Accumulated depreciation equipment $ 60,000 Notes payable (due 4/1ext year) 18,000 Accounts payable 9,500 Capital stock 25,000 Retained earnings 15,000 Dividends 1,000 Guide revenue earned 102,000 Salary expense 87,500 Camping supply expense 1,200 Insurance expense 9,600 Depreciation expense: equipment 5,000 Interest expense 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? c. Has the company been profitable in the past? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req A3 Req B Reqc
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