The trial balance of Speedy G Internet, Inc., at May 31, 2011, follows:

Adjusting data at May 31:

a. Unearned service revenue still unearned, $1,000

b. Prepaid rent still in force, $1,900

c. Supplies used during the month, $700

d. Depreciation for the month, $500

e. Accrued salary expense, \($800\)

Requirements

1. Journalize adjusting journal entries.
2. Enter the trial balance on a work sheet and complete the work sheet of Speedy G Internet.
3. Prepare the income statement, statement of retained earnings, and classified balance sheet in report form.
4. Using the work sheet data that you prepared, journalize the closing entries and post the adjusting and closing entries to T-accounts. Use dates and show the ending balance of each account.
5. Prepare a postclosing trial balance.
6. Calculate the current and debt ratios for the company.

Transcribed Image Text:

SPEEDY G INTERNET, INC. Trial Balance May 31, 2011 Trial Balance Account Debit Credit Cash 4,200 Accounts receivable 15,000 Prepaid rent 2,200 Supplies 1,000 Equipment 31,500 Accumulated depreciation 4,000 Accounts payable Salary payable Unearned service revenue Common stock Retained earnings 6,100 4,000 7,000 19,600 Dividends Service revenue 3,600 19,000 Salary expense 2,200 Rent expense Depreciation expense Supplies expense Total 59,700 59,700