*This is one Problem!!!!

Wilderness Guide Services, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The companys year-end adjusted trial balance dated December 31, current year, is as follows.

WILDERNESS GUIDE SERVICES, INC.
Adjusted Trial Balance
December 31, Current Year
Cash	$	12,200
Accounts receivable		31,000
Camping supplies		7,900
Unexpired insurance policies		2,400
Equipment		70,000
Accumulated depreciation: equipment					$	60,000
Notes payable (due 4/1/next year)						18,000
Accounts payable						9,500
Capital stock						25,000
Retained earnings						15,000
Dividends		1,000
Guide revenue earned						102,000
Salary expense		87,500
Camping supply expense		1,200
Insurance expense		9,600
Depreciation expense: equipment		5,000
Interest expense		1,700
	$	229,500			$	229,500

(Hint: Unprofitable companies have no income taxes expense.)

a-1. Prepare an income statement for the year ended December 31, current year.

a-2. Prepare a statement of retained earnings for the year ended December 31, current year.

a-3. Prepare the companys balance sheet dated December 31, current year.

b. Does the company appear to be liquid?

c. Has the company been profitable in the past?

omplete this question by entering your answers in the tabs below.

• Req A1
• Req A2
• Req A3
• Req B
• Req C

Prepare an income statement for the year ended December 31, current year.

WILDERNESS GUIDE SERVICES, INC.
Income Statement
For the Year Ended December 31, Current Year
Revenues:
Expenses:
		0
		$0

Prepare a statement of retained earnings for the year ended December 31, current year.

WILDERNESS GUIDE SERVICES, INC.
Statement of Retained Earnings
For the Year Ended December 31, Current Year
Retained earnings (1/1)
Retained earnings (12/31)	$0

Prepare the companys balance sheet dated December 31, current year. (Amounts to be deducted should be indicated by a minus sign.)

WILDERNESS GUIDE SERVICES, INC.
Balance Sheet
December 31, Current Year
Assets
Equipment
		0
Total assets		$0
Liabilities
Total liabilities		$0
Stockholders' equity
Total stockholders' equity		$0
Total liabilities and stockholders' equity		$0

Does the company appear to be liquid?

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Has the company been profitable in the past?

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