Question: In the template attched in file, you are given a trial balance for year ended December 31, 20X3. Using the trial balance, you are required to complete an Income Statement and a Balance Sheet. In addition, another task will be choosing the appropriate type of account classification as well. Lastly, there are a few questions following the completion of the financial statements. All work will be done on the Student Template.
Task 1: Using the Trial Balance, prepare an Income Statement.
Task 2: Using the Trial Balance, enter the appropriate amounts for each account. Classify each as an Asset, Liability, or Equity account then specify if they are current or non-current.
Task 3: Once complete, prepare a Balance Sheet listing the accounts and account balances in the appropriate order. (Keep in mind that Net Income Increases the Owner's Equity Account).
1. Briefly describe whether or not you think this company is profitable.
2. Is the company collecting enough in revenue to cover their expenses?
3. Comment on any suggestions you might have for the company's owners.
Information related to above question is enclosed below:
Attachment:- StudentTemplateforFinancialStatementProject51.rar