Chapter 2, Problem 35AP

Preparing a trial balance, income statement, statement of retained earnings, and balance sheet (Learning Objective 4) 20-25 min.

The accounts of Hernandez Computer Repair, Inc., and their normal balances at March 31, 2018. follow. The accounts are listed in no particular order.

Account	Balance
Common Stock	$15,000
Insurance Expense	150
Accounts Payable	925
Service Revenue	13,200
Land	20,000
Supplies Expense	360
Cash	4,600
Salaries Expense	3,650
Building	110,000
Rent Expense	1,500
Dividends	2,000
Utilities Expense	675
Retained Earnings	17,010
Accounts Receivable	850
Notes Payable	98,000
Supplies	350

Requirements

1. 1. Prepare the company s trial balance at March 31, 2018, listing accounts in the proper order List the largest expense first, the second largest expense next, and so on.
2. 2. Prepare the month-end financial statements income statement, statement of retained earnings, and balance sheet. The Retained Earnings balance of $17,010 is the beginning balance for the month; it has not been updated for the current month’s income or loss.
3. 3. Was March a profitable month for Hernandez Computer Repair, Inc.? Why or why not?