Below are the financial accounts of Landscape Design, Inc. The company has just completed its third year of operations ended November 30, 2011.

REQUIRED

1. Prepare the income statement, statement of retained earnings, and balance sheet for Landscape Design.

2. Explain the difference between Salaries Expense and Salaries Payable.

3. Evaluate the company's ability to meet its bills when they come due.

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Accounts Payable Accounts Receivable Cash Common Stock Design Service Revenue Dividends Income Taxes Expense Income Taxes Payable S 7,400 9,100 115,750 15,000 248,000 40,000 38,850 13,000 Marketing Expense Office Rent Expense Retained Earnings, 19,700 18,200 November 30, 2010 Salaries Salaries Payable Supplies Utilities Expense 55,400 96,000 2,700 800 3,100