The trial balance of Advantage Specialties, Inc., follows:

Rebecca Smith, your best friend, is considering making an investment in Advantage Specialties, Inc. Rebecca seeks your advice in interpreting the company’s information. Specifically, she asks how to use this trial balance to compute the company’s total assets, total liabilities, and net income or net loss for the year.

Requirement
1. Write a short note to answer Rebecca’s questions. In your note, state the amounts of Advantage Specialties total assets, total liabilities, and net income or net loss for the year. Also show how you computed each amount.

Transcribed Image Text:

Advantage Specialties, Inc. Trial Balance December 31, 2010 Cas $11,000 receivable Prepaid expenses Accounts payable. Note payable Common stock $102,000 Service revenue... Rent expense Advertising expense Supplies expense. $519,000 $519,000