The trial balance of Dallas Design Specialties, Inc., follows:

Annie May, your best friend, is considering investing in Dallas Design Specialties, Inc. Annie seeks your advice in interpreting this 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
Write a short note to answer Annie€™s questions. In your note, state the amounts of Dallas Design Specialties€™ total assets, total liabilities, and net income or net loss for the year. Also show how you computed eachamount.

Transcribed Image Text:

A1 Dallas Design Specialties, Inc. Trial Balance December 31, 2014 Cash Accounts receivable Prepaid expenses Building Equipment $31,600 65,000 3,000 104,000 235,000 6 7 Accounts payable 52,200 132,000 66,000 182,000 Note payable Common stock 10 Retained earnings 11 Dividends 18,000 Service revenue 180,600 13 Rent expense. 59,000 12,000 76,200 Advertising expense 15 Wage expense 16 Supplies expense 17 Total 9,000 S 612,.80 612,800