225 GREEN A ADJUSTED TRIAL BALANCE DECEMBER 31. CURRENT YEAR Cash Accounts Supplies .. $ 218,640 10,800 720 28,800 receivable . . . . Accumulated depreciation: equipment Accounts payable . . 12,000 3,600 8,400 60,000 108,000 Income taxes payable . Capital stock Retained earnings.. . . 4,800 Lawn care revenue earned . .. . . . . . . . 230,400 ..124,800 2,880 720 2,400 27.840 Advertising expense.. .. Depreciation expense: equipment $ 422,400 $422,400 Prepare an income statement and statement of retained earnings for the year ended December 31, current year. Also prepare the company's balance sheet dated December 31, current year Does the company appear to be liquid? Defend your answer. Has the company been profitable in the past? Explain. a. b. c.
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