Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 34

Affordable Lawn Care, Inc., provides lawn-mowing services to both commercial and residential customers.he company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31.n adjusted trial balance dated December 31, 2015, follows.

Instructions
a.repare an income statement and statement of retained earnings for the year ended December 31, 2015.lso prepare the company's balance sheet dated December 31, 2015.
b.repare the necessary year-end closing entries.
c.repare an after-closing trial balance.
d.sing the financial statements prepared in part a, briefly evaluate the company's profitability and liquidity.