The unadjusted trial balance of Watson Anvils at December 31, 2024, and the data for the adjustments follow:

Adjustment data: 

a. Unearned Revenue still unearned at December 31, $3,600. 

b. Prepaid Rent still in force at December 31, $2,000. 

c. Office Supplies used, $600.

d. Depreciation, $400. 

e. Accrued Salaries Expense at December 31, $180.

Requirements

1. Open the T-accounts using the balances in the unadjusted trial balance. 

2. Complete the worksheet for the year ended December 31, 2024 (optional). 

3. Prepare the adjusting entries and post to the accounts. 

4. Prepare an adjusted trial balance. 

5. Prepare the income statement, the statement of owner’s equity, and the classified balance sheet in report form. 

6. Prepare the closing entries and post to the accounts. 

7. Prepare a post-closing trial balance. 

8. Calculate the current ratio for the company.

Transcribed Image Text:

Account Title Cash WATSON ANVILS Unadjusted Trial Balance December 31, 2024 Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Watson, Capital Watson, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Total Balance Debit $ 13,560 17,000 2,140 2,800 30,000 4,600 2,300 $ 72,400 Credit $ 11,000 7,200 5,600 29,600 19,000 $ 72,400