Preparing financial statements from an adjusted trial balance. [20-30 min]The adjusted tri...

Preparing financial statements from an adjusted trial balance. [20-30 min]

The adjusted trial balance of Party Piano Tuning Service, Inc., at fiscal year end May 31, 2012, follows.

Requirements

1. Prepare Party’s 2012 income statement.

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2. Prepare the statement of retained earnings for the year.

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3. Prepare the year-end balance sheet.

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4. Which financial statement reports Party’s results of operations? Were the 2012 operations successful? Cite specifics from the financial statements to support your evaluation.

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5. Which statement reports the company’s financial position?