The owners of Opera Tours Inc. are selling the business. They offer the trial balance that appears

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The owners of Opera Tours Inc. are selling the business. They offer the trial balance that appears at the top of the next page to prospective buyers.
Your best friend is considering buying Opera Tours. She seeks your advice in interpreting this information. Specifically, she asks whether this trial balance provides the data to prepare a balance sheet and an income statement.
Requirement
Write a memo to answer your friend's questions. Indicate which accounts go on the balance sheet and which accounts go on the income statement. State the amount of net income that Opera Tours earned in 2014, and explain your computation.
The owners of Opera Tours Inc. are selling the business.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

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