(L.OBJ. 6) Preparing financial statements from an adjusted trial balance [20—30 min] Th...

(L.OBJ. 6) Preparing financial statements from an adjusted trial balance [20—30 min]

The adjusted trial balance of Event World Piano Tuning Service at fiscal year-end August 31, 2011, follows.

Requirements

1. Prepare Event World Piano Tuning Service’s 2011 income statement.

2. Prepare the statement of owner’s equity for the year.

3. Prepare the year-end balance sheet.

4. Which financial statement reports Event World Piano Tuning Service’s results of operations? Were 2011 operations successful? Cite specifics from the financial statements to support your evaluation.

5. Which statement reports the company’s financial position? Does Event World Piano Tuning Service’s financial position look strong or weak? Give the reason for your evaluation.