Green Lawns, Inc., performs adjusting entries every month, but closes its accounts only at yearend. The following

Question:

Green Lawns, Inc., performs adjusting entries every month, but closes its accounts only at yearend. The following is the company's year-end adjusted trial balance dated December 31, current year.

a. Prepare an income statement and statement of retained earnings for the year ended December 31, current year. Also prepare the company's balance sheet dated December 31, current year.
b. Does the company appear to be liquid? Defend your answer.
c. Has the company been profitable in the past? Explain.

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...