Chapter 2, Problem 2.58AP

(Learning Objective 5: Construct and use a trial balance) The trial balance of Baker Specialties. Inc., follows:

Veronica Gomez, your best friend, is considering investing in Baker Specialties, Inc. Veronica 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

1. 1. Write a short note to answer Veronica’s questions. In your note, state the amounts of Baker’s total assets, total liabilities, and net income or net loss for the year. Also show how you computed each amount.