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Using the unadjusted trial balance provided below, you are required to : Prepare an...

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Question

Accounting

Using the unadjusted trial balance provided below, you are required to :

  1. Prepare an Income Statement for the year ending December 31; and,
  2. Calculate the Net Profit Margin.

Note: For the Net Profit Margin, do not forget the "%" sign and round your answer up to 2 decimal places

The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31

EQUILIBRIUM RIDING, INC.

Unadjusted Trial Balance

At December 31

Account Name Debits Credits
Cash $ 59,750
Accounts Receivable 3,300
Prepaid Insurance 4,700
Equipment 64,600
Land 23,000
Accounts Payable $ 29,230
Deferred Revenue 1,500
Notes Payable(long-term) 74,000
Common Stock 5,000
Retained Earnings 14,500
Dividends 0
Service Revenue 35,700
Salaries and Wages Expense 3,900
Repairs and Maintenance Expense 410
Other expenses 270
Totals $159,930 $159,930

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