Requirement 1. Using the worksheet. prepare the adjusted trial balance of High Mountains Ltd. at August 31, 2020. The unadjusted balances have been entered for you. Key each adjusting entry by letter. Calculate the adjusted balance uf each account. and then tctal the debit and credit columns in the adjusted trial balance. (Leave unused cells blank. Ruund your answers to the nearest whole number.) High Mountains Ltd. Trial Balance Worksheet August 31, 2020 Trial Balance Cash Accounts receivable Accrued service revenue Prepaid rent Supplies Fumlture Amumulated depreciation Accounts payable Salary payable Share capital Retained earnings Dividends Service revenue Salary expense Rent expense Utilities expense Depreciation expense Supplies expense Total Requirement 2. Prepare the monthly income statement, the statement of retained earnings, and the classied balance sheet. Begin by preparing the income statement. (Use parentheses or a minus sign for a net loss.) Revenues: Expenses: Total expenses Net income (loss) Now prepare the statement of retained earnings. (Complete all answer boxes. Use a minus sign or parentheses for numbers to be subtracted.) Prepare the heading and asset. liability. and shareholders' equity portions of the balance sheet. (Use a minus sign or parentheses for numbers to be subtracted. Abbreviations used: Acc. den. = Accumulated depreciation.) Cu rrent a ssets: Total current liabilities Shareholders' Equity Total current assets Total shareholders' equity Total assets Total liabilities and shareholders' equity a. Compare the business's net income for August to the amount of dividends paid to the owners. Suppose this trend continues into September. What will be the effect on the business's nancial position. as shown by its accounting equation? High Mountains net income V dividends for the month. Continuation of this trend will V both the assets and the shareholders' equity (retained earnings) of the business. b. Will the trend make it easier or more difcult tor High Mountains to borrow money ifthe business gets in a bind and needs cash? Why? This trend will make it V because more and more V will be available for the business to pay debts as they come due. c. Does either the current ratio or the cash position suggest the need for immediate borrowing? Explain. (Round the current ratio to two decimal places, XXX.) The current ratio is V with a ratio of . V that the business will need to borrow. With a cash position of$ . High Mountains V cover all the current liabilities. \f_ X Requirements 1. Using the worksheet. prepare the adjusted trial balance of High Mountains Ltd. at August 31, 2020. The unadjusted balances have been entered for you. Key each adjusting entry by letter. 2. Prepare the income statement, the statement of retained earnings, and the classied balance sheet. 3. a. Compare the business's net income for August to the amount of dividends paid to the owners. Suppose this trend continues into September. What will be the effect on the business's nancial position. as shown by its accounting equation? b. Will the trend make it easier or more difficult for High Mountains to borrow money if the business gets in a bind and needs cash? Why? 0. Does either the current ratio or the cash position suggest the need for immediate borrowing? Explain. -@