Oliver Nicholas, the owner of Nicholas Marketing Services, prepared the following trial balance at December 31, 2024.

Instructions

a. Prepare an income statement for the year ended December 31.

b. Prepare a statement of owner’s equity for the year ended December 31.

c. Prepare a balance sheet at the end of December 2024.

Taking It Further

Discuss how well the company performed.

Transcribed Image Text:

NICHOLAS MARKETING SERVICES Trial Balance December 31, 2024 Cash Accounts receivable Supplies Prepaid insurance Prepaid rent Equipment Unearned revenue Notes payable O. Nicholas, capital O. Nicholas, drawings Service revenue Interest expense Rent expense Salaries expense Telephone expense Debit $ 5,500 20,380 3,320 4,450 2,265 27,400 3,600 150 6,600 12,555 1,540 $87,760 Credit $2,500 15,000 34,460 35,800 $87,760