Based on the Following Trial Balance for Barry's Automotive Shop

question 68

Essay

Based on the following trial balance for Barry's Automotive Shop, Inc., prepare an income statement, statement of retained earnings, and a balance sheet. Barry made no additional investments in the company during the year.
Barry's Automotive Shop, Inc.
Trial Balance
December 31 $\begin{array}{llcc} \text {Cash................................. } &\$13,500\\ \text { Accounts receivable......... } &1,500\\ \text {Supplies............................. } &500\\ \text {Repair shop equipment...... } &27,000\\ \text { Service truck.................... } &33,000\\ \text {Accounts payable.............. } &&\$2,600\\ \text { Common stock.................. } &&1,000\\ \text {Retained earnings.............. } &&38,525\\ \text { Dividends.......................... } &36,000\\ \text { Service revenue................. } &&125,000\\ \text {Supplies expense................ } &3,425\\ \text {Rent expense..................... } &18,000\\ \text {Utilities expense................ } &5,000\\ \text {Gas expense...................... } &7,200\\ \text {Wages expense.................. } &\underline{22,000}&\underline{\quad\quad}\\ \text {Totals .............................. } &\underline{\$167,125}&\underline{167,125}\\\end{array}$

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Definitions:

Forces

Elements or factors that influence or drive changes within a system, organization, or environment.

Firm's Future

The anticipated direction, growth, or performance of a company over the coming years.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes, helping in strategic planning and decision-making.