Question

The accounts of Highland Consulting, Inc. follow with their normal balances at August 31, 2013. The accounts are listed in no particular order.
Account Balance
Common Shares ..... $107,700
Insurance Expense ... 1,300
Accounts Payable .... 4,000
Service Revenue .... 86,500
Land ....... 89,000
Supplies Expense ... 3,100
Cash ......... 9,200
Salary Expense .... 56,000
Building ....... 91,000
Rent Expense ..... 8,700
Dividends ....... 10,000
Utilities Expense ..... 5,400
Retained Earnings ... 13,600
Accounts Receivable .. 5,500
Notes Payable ..... 68,000
Supplies ........ 600
Requirements
1. Prepare the company’s trial balance at August 31, 2013, listing accounts in the proper order. For the expenses, list the largest expense first, the second- largest expense next, and so on.
2. Prepare the financial statements: income statement, statement of changes in equity, and statement of financial position. The retained earnings balance of $13,600 is the beginning balance for the year; it has not been updated for the current year’s net income or loss.
3. Was it a profitable year for Highland Consulting, Inc.? Why or why not?


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  • CreatedJuly 08, 2015
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