The adjusted trial balance of Boston Irrigation System at December 31, 2024, follows:

 

Requirements

1. Prepare the company’s income statement for the year ended December 31, 2024. 

2. Prepare the company’s statement of owner’s equity for the year ended December 31, 2024. 

3. Prepare the company’s classified balance sheet in report form at December 31, 2024. 

4. Journalize the closing entries for Boston Irrigation System. 

5. Compute the company’s current ratio at December 31, 2024. At December 31, 2023, the current ratio was 2.3. Did the company’s ability to pay current debts improve or deteriorate, or did it remain the same?

Transcribed Image Text:

BOSTON IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Building Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Boston, Capital Boston, Withdrawals Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Depreciation Expense-Equipment Depreciation Expense-Building Total Balance Debit $ 11,800 46,000 29,500 6,300 63,000 28,000 2,200 1,100 16,400 1,100 2,200 2,500 1,800 $ 211,900 Credit $ 25,000 7,700 32,100 2,200 2,600 2,100 32,700 33,000 74,500 $ 211,900