Chapter 3, Problem 52BP

Preparing financial statements (Learning Objective 3) 20-25 min.

The adjusted trial balance for Bayside Realty, Inc., at November 30, 2018, follows:

Bayside Realty, Inc. Adjusted Trial Balance November 30, 2018
		ACCOUNT	DEBIT	CREDIT
		Cash	$ 10,200
		Accounts Receivable	7,300
		Prepaid Rent	1,200
		Supplies	800
		Equipment	53,000
		Accumulated Depreciation, Equipment		$ 6,600
		Accounts Payable		5,400
		Unearned Service Revenue		2,700
		Interest Payable		610
		Salaries Payable		3,600
		Notes Payable		10,250
		Common Stock		34,000
		Retained Earnings		10,650
		Dividends	15,000
		Service Revenue		88,000
		Interest Revenue		775
		Salaries Expense	51,300
		Rent Expense	15,825
		Depreciation Expense. Equipment	3,800
		Utilities Expense	2,700
		Interest Expense	950
		Supplies Expense	500
		Total	$162,585	$162,585

Requirements

1. 1. Prepare Bayside Realty's income statement and statement of retained earnings for the year ended November 30, 2018, and year-end balance sheet. List expenses in decreasing order on the income statement
2. 2.  
   1. a. Which financial statement reports Bayside Realty's results of operations? Were operations successful during 2018? Cite specifics from the financial statements to support your evaluation.
   2. b. Which statement reports the company's financial position?