Start from the adjusted trial balance shown below that Lee Management Consulting prepared at June 30, 2016:

Required
1. Journalize, with explanations, and post to T-accounts the closing entries at June 30, 2016. Denote each closing amount as Clo . and account balance as Bal .
2. Prepare a classified balance sheet in report format at June 30, 2016.
3. Compute the current ratio and the debt ratio of Lee Management Consulting and evaluate these ratio values as indicative of a strong or weak financial position.
4. Prepare a post-closing trial balance at June 30, 2016.

Transcribed Image Text:

LEE MANAGEMENT CONSULTING Adjusted Trial Balance June 30, 2016 Cash $23,750 1,900 100 1,000 Accounts receivable Supplies Equipment Accumulated amortization-equipment Furniture Accumulated amortization-furniture Accounts payable $ 42 5,000 167 5,000 500 1,200 25,000 Salaries payable Unearned revenue Michael Lee, capital Michael Lee, withdrawals 2,000 Service revenue 6,200 Amortization expense -equipment Amortization expense furniture Rent expense Salaries expense Supplies expense Utilities expense Total 42 167 3,000 500 400 250 $38,109 $38,109