Based on the Following Trial Balance for Sally's Salon, Prepare

question 16

Essay

Based on the following trial balance for Sally's Salon, prepare an income statement, statement of retained earnings, and a balance sheet. Sally Crawford, the sole stockholder, made no additional investments in the company during the year.
$\begin{array}{|lc|}\hline & \text { Sally's Salon } \quad \quad \quad \quad \quad \quad \quad\\\hline \text { Trial Balance } \\\hline \text { December 31 } \\\end{array}$
$\begin{array}{|l|r|l|}\hline \text { Cash } & \$ 6,500 \\\hline \text { Accounts receivable } & 475 \\\hline \text { Beauty supplies } & 2,500 \\\hline \text { Beauty shop equipment } & 17,000 \\\hline \text { Accounts payable } & & \$ \quad 745\\\hline \text { Common Stock } & & 21,155\\\hline \text { Dividends } & 36,000 \\\hline \text { Revenue earned } && 72,000 \\\hline \text { Beauty supplies expense } & 3,425 \\\hline \text { Rent expense } & 6,000 \\\hline \text { Wages expense } & 22,000 \\\hline \text { Totals } & \underline {\$ 93,900}& \underline { \$ 93,900} \\\hline\end{array}$

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Definitions:

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A distributor that sells books in large quantities at discounted prices, primarily to retailers, libraries, and educational institutions.

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A dining establishment where customers are seated and served by waitstaff, offering a more formal dining experience compared to fast-food or counter-service restaurants.

Net Present Value

A financial metric that calculates the present value of the expected equity of cash flows, considering the time value of money.

Analysis Results

The outcomes or findings of a systematic examination or evaluation, often related to financial data or company performance.