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Instructions: Using Adjusted Trial Balance above, perform the following tasks: (1) Prepare an Income Statement for the year ended December 31, 2020 (15 points). (2) Prepare a Statement of Retained Earnings for the year ended December 31, 2020 (5 points). (3) Prepare a Balance Sheet dated December 31, 2020 (15 points). (4) Prepare all necessary closing entries at December 31, 2020 (15 points). (5) Prepare an after-closing trial balance dated December 31, 2020 (10 points). (6) Does the company appear to be liquid? Explain. Justify your conclusion with calculation of working capital and current ratio (5 points). (7) Has the company been profitable in the past? Is the company profitable this year? Justify your conclusion with calculation of net income percentage and return on equity (5 points).

The following is Goldie Corporation year-end adjusted trial balance dated December 31, 2 Goldie Co. Adjusted Trial Balance at 31 December 2020 Debit Credit Cash 51,402 Accounts receivable 2,400 Office supplies 600 Prepaid rent 1,440 Office equipment 64,800 Accumulated depreciation: office equipment 42,300 Accounts payable 1,680 Interest payable 432 Income taxes payable 2,100 Unearned revenue 10,800 Capital stock 36,000 Retained earnings, 1 January 2020 9,600 Dividends 1,200 Consulting services revenue 72,000 Office supplies expense 726 Depreciation expense: office equipment 9,900 Rent expense 1,212 Salaries expense 32,520 Interest expense 432 Income taxes expense 8,280 Totals 174,912 174,912

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