Question

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	$	67,200
Accounts Receivable		4,650
Prepaid Insurance		7,100
Equipment		78,000
Land		33,150
Accounts Payable			$	29,800
Unearned Revenue				2,800
Notes Payable (long-term)				79,000
Common stock				5,000
Retained Earnings				54,170
Dividends		0
Service Revenue				26,200
Wages Expense		5,600
Repairs and Maintenance Expense		595
Office Expenses		675
Totals	$	196,970	$	196,970

Restricted Cash (short-term)

	EQUILIBRIUM RIDING, INC. Income Statement For the Year Ended December 31 0 0

	EQUILIBRIUM RIDING, INC. Statement of Retained Earnings Retained Earnings, Jan. 1 Retained Earnings, Dec. 31

	EQUILIBRIUM RIDING, INC. Balance Sheet 0 $0 0 0 0 $0

Answer 1

EQUILIBRIUM RIDING, INC.
Income Statement For the Year Ended December 31
	Amount($)	Amount($)
1.Revenues
Service Revenue	26200
		26200
2.Expenses
Wage Expense	5600
Repairs and Maintainence	595
Office Expenses	675
		6870
3.Operating Income(1-2)		19330
4.Less: Income tax expense		0
5.Net Income		19330
EQUILIBRIUM RIDING, INC.
Statement of Retained Earnings
	Amount($)	Amount($)
Balance at the Beginning of the year	54170
Add:Net Income during the Year	19330
Balance at the End of the Year	73500
EQUILIBRIUM RIDING, INC.
Balance Sheet
	Amount($)	Amount($)
Assets
Current Assets
Cash	67200
Accounts Receivables	4650
Prepaid Insurance	7100
		78950
Non Current Assets
Land	33150
Equipment	78000
		111150
Total		190100
Liabillities and Stock Holders Equity
Current Liabilities
Accounts payables	29800
Unearned Income	2800
		32600
Non Current Liablities
Notes Payables	79000
		79000
Stock Holders Equity
Common Stock	5000
Retained Earnings	73500
Total Stock holders Equity		78500
Total		190100
Note: There are no adjustments as no adjustments information given