Below are the financial accounts of Bradford Realty, Inc. The company has just completed its 5th year of operations ended October 31, 2011.

REQUIRED
1. Prepare the income statement, statement of retained earnings, and balance sheet for Bradford Realty.
2. Explain the difference between Commissions Expense and Commissions Payable.
3. Evaluate the company's ability to meet its bills when they come due.

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Accounts Payable Accounts Receivable Cash Commission Sales Revenue Commissions Expense Comisions Payable Common Stock Dividends Equipment Income Taes Expensc $ 3,500 12,700 57,500 415,000 Income Taxes Payable Office Rent Expense Retained Earnings, $12,500 40,000 15,700 900 2,700 October 31, 2010 230,000 Supplies 21,500 Utilities Expense 31,000 Telephone and 40,000 44,200 Wages Expense 35,700 Computer Expenses 6,300 29,400