Reference no: EM132770969

Problem 1: Fort Road Foxtrot's adjusted trial balance for December 2018 is given. Prepare Income Statement and Balance sheet.

Inventory                             $ 6,500
Common stock                          45,000
Cash                                     16,550
Operating expenses                   1,350
Notes payable                            600
Interest expense                          900
Depreciation expense                  1,200
Net sales                                12,800
Accounts receivable                  9,600
Accounts payable                    4,800
Long-term debt                    55,000
Cost of goods sold                  5,750
Buildings and equipment        122,000
Accumulated depreciation      34,000
Taxes                                   1,440
Retained earnings                   15,250

Problem 2: "Window dressing "in accounting is evil. Explain the statement and advise measures to counter this.