Len Thomas, the accountant for Lancaster Consulting, prepared the worksheet shown on the next page on a computer spreadsheet but has lost much of the data. The only particular item Thomas can recall is that there was an adjustment made to correct an error where $600 of supplies, purchased on credit, had been incorrectly recorded as $600 of equipment.

Required
1. Complete the worksheet by filling in the missing data.
2. Journalize the closing entries that would be required on December 31, 2017. Include explanations.
3. Prepare the company's classified balance sheet at December 31, 2017, in report format.
4. Compute Lancaster Consulting's current ratio and debt ratio for December 31, 2017. On December 31, 2016, the current ratio was 2.14 and the debt ratio was 0.47. Comment on the changes in the ratios.
5. If this company reported under IFRS, how might the balance sheet presentation differ from that prepared in Requirement 3?

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LANCASTER CONSULTING For the Year Ended December 31, 2017 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit 19,000 20,400 Account Title Debit Credit Credit Credit 19,000 Accounts receivable (b) 1,200 Prepaid insurance Accum. amort.-equip. Accum. amort.-bldg 3,000 2,400 40,650 41250 5,400 90,000 (e) 3,000 45,000 Accounts payable Interest payable Wages payable Unearned consulting fees Mortgage payable L. Lancaster, capital L. Lancaster, withdrawals Consulting fees earned Wages expense Insurance expense Interest expense Utilities expense Supplies expense Amort. exp-equip. Amort. exp.-bldg. 7,500 1,800 (f) 900 5,250 (g) 750 75,000 61,500 61500 9,000 9,000 9,000 127,450 128,500 50250 51,150 4,500 (b) 1,200 (d) 1,800 292,600 292,600