Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
P4-36B Preparing financial statements including a classified balance sheet in report form, preparing
closing entries, and using the current ratio to evaluate a company
Learning Objectives 1, 3, 6
2. Ending Retained Earnings $60,200
The adjusted trial balance of Bradley Irrigation System at December 31, 2018, follows:
Requirements
1. Prepare the company’s income statement for the year ended December 31, 2018.
2. Prepare the company’s statement of retained earnings for the year ended December 31, 2018.
3. Prepare the company’s classified balance sheet in report form at December 31, 2018.
4. Journalize the closing entries for Bradley Irrigation System.
5. Compute the company’s current ratio at December 31, 2018. At December 31, 2017, the current ratio was 1.7.
Did the company’s ability to pay current debts improve or deteriorate, or did it remain the same?
SOLUTION
P4-37B Preparing a worksheet, financial statements, and closing entries
Learning Objectives 1, 2, 3
2. Total Assets $92,000
The unadjusted trial balance of Fleming Investment Advisers at December 31, 2018, follows:
Adjustment data at December 31, 2018:
a. Unearned Revenue earned during the year, $700.
b. Office Supplies on hand, $3,000.
c. Depreciation for the year, $3,000.
d. Accrued Salaries Expense, $4,500.
e. Accrued Service Revenue, $9,000.
Requirements
1. Prepare a worksheet for Fleming Investment Advisers at December 31, 2018.
2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account
format.
3. Prepare closing entries.
SOLUTION
Requirement 1
P4-37B, cont.
Requirement 2
P4-37B, cont.
Requirement 2, cont.
