The trial balance of Tampa Outdoor Design, Inc., follows:

Ramona Robinson, your best friend, is considering making an investment in Tampa Outdoor Design, Inc. Ramona 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
Write a short note to answer Ramona€™s questions. In your note, state the amounts of Tampa Outdoor Design€™s total assets, total liabilities, and net income or net loss for the year. Also show how you computed eachamount.

Transcribed Image Text:

A1 Tampa Outdoor Design, Inc. Trial Balance December 31, 2014 27,300 38,100 6,000 197,000 140,900 2 Cash Accounts receivable 4 Prepaid expenses Building 6 Equipment 54,000 135,300 75,000 112,200 Accounts payable Note payable Common stock 10 Retained earnings 11 Dividends 16,000 Service revenue 164,700 13 Rent expense 24,700 10,000 77,000 4,200 Advertising expense 15 Wage expense 16 Supplies expense 17 Total 54120 541,200