Refer to Exercise 3-14 of Chapter 3. Start from the posted T-accounts and the adjusted trial balance that Emily Schneider, Accountant, P.C., prepared for her accounting practice at December 31 .

\section*{Required}

1. Journalize and post the closing entries at December 31. Denote each closing amount as Clo. and an account balance as Bal.

2. Prepare a classified balance sheet at December 31 .

3. Compute the current ratio and the debt ratio of Schneider's accounting practice and evaluate these ratio values as indicative of a strong or weak financial position.

4. If your instructor assigns it, complete the accounting work sheet at December 31.

\section*{CHALLENGE EXERCISE}