Oliver Nicholas, the owner of Nicholas Marketing Services, prepared the following trial balance at December 31, 2021.

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 2021.

Taking it further

Discuss how well the company performed.

Transcribed Image Text:

NICHOLAS MARKETING SERVICES Trial Balance December 31, 2021 Debit Credit S 5,500 20,380 Cash Accounts receivable Supplies Prepaid insurance Prepaid rent Equipment Unearned revenue 3,320 4,450 2,265 27,400 $ 2,500 Notes payable O. Nicholas, capital O. Nicholas, drawings 15,000 34,460 3,600 Service revenue 35,800 Interest expense Rent expense Salaries expense Telephone expense 150 6,600 12,555 1,540 $87,760 $87,760