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?