The adjusted trial balance for Bayside Realty, Inc., at November 30, 2016, follows:

 

Requirement

1. Prepare Bayside Realty’s income statement and statement of retained earnings for the year ended November 30, 2016, and year-end balance sheet. List expenses in decreasing order on the income statement.

2. a. Which financial statement reports Bayside Realty’s results of operations? Were operations successful during 2016? Cite specifics from the financial statements to support your evaluation.

b. Which statement reports the company’s financial position?

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Bayside Realty, Ino. Adjusted Trial Balance November 30, 2016 DEBIT ACCOUNT CREDIT $ 10,200 7,300 Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation, Equipment Accounts Payable 1,200 800 53,000 $ 6,600 5,400 Unearned Service Revenue 2,700 Interest Payable Salaries Payable Notes Payable 610 3,600 10,250 Common Stock 34,000 10,650 Retained Earnings Dividends 15,000 88,000 Service Revenue Interest Revenue 775 Salaries Expense Rent Expense Depreciation Expense, Equipment Utilities Expense Interest Expense Supplies Expense Total 51,300 15,825 3,800 2,700 960 500 $162,585 $162,585