Preparing Financial Statements from a Trial Balance The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31.

Required:

 Using the unadjusted trial balance provided, create a classified Balance Sheet, Statement of Retained Earnings, and Income Statement for Equilibrium Riding, Inc., for the year ended December 31. (These financial statements would be considered “preliminary” because they use unadjusted balances.)

 
 

Transcribed Image Text:

EQUILIBRIUM RIDING, INC. Unadjusted Trial Balance At December 31 Account Name Debits $ 59,750 Credits Cash Accounts Receivable 3,300 Prepaid Insurance Equipment 4,700 64,600 Land 23.000 Accounts Payable S 29,230 Unearned Revenue 1500 Notes Payable (long-term) 74.000 Common Stock 5.000 Retained Eamings Dividends 14,500 Service Revenae 35,700 Salaries and Wages Expense Repairs and Maintenance Expense Office Expenses 3.900 410 270 Totals S159.930 S159,930 EQUILIBRIUM RIDING, INC. Unadjusted Trial Balance At December 31 Account Name Debits $ 59,750 Credits Cash Accounts Receivable 3,300 Prepaid Insurance Equipment 4,700 64,600 Land 23.000 Accounts Payable S 29,230 Unearned Revenue 1500 Notes Payable (long-term) 74.000 Common Stock 5.000 Retained Eamings Dividends 14,500 Service Revenae 35,700 Salaries and Wages Expense Repairs and Maintenance Expense Office Expenses 3.900 410 270 Totals S159.930 S159,930

Answer rating: 100% (QA)

Income statement outlines the revenues and expenses incurred during a particular ... View the full answer