The adjusted trial balance of Armored Financial Couriers, Inc., at June 30, 19X1, the end of the company's fiscal year, follows:

Adjusting data at June 30, 19X1, which have all been incorporated into the trial balance figures above:

a. Depreciation for the year: equipment, \(\$ 7,300\); building, \(\$ 3,970\).

b. Supplies used during the year, \(\$ 3,580\).

c. Prepaid insurance expired during the year, \(\$ 3,100\).

d. Accrued interest expense, \(\$ 690\).

e. Accrued service revenue, \(\$ 940\).

f. Unearned service revenue earned during the year, \(\$ 7,790\).
g. Accrued wage expense, \(\$ 770\).
\section*{Required}
1. Journalize the adjusting and closing entries.
2. Prepare Armored Financial's income statement and statement of retained earnings for the year ended June 30, 19X1, and the classified balance sheet on that date. Use the account format for the balance sheet.
3. Compute Armored Financial's current ratio and debt ratio at June 30, 19X1. One year ago the current ratio stood at 1.01, and the debt ratio was 0.71 . Did Armored Financial's ability to pay debts improve or deteriorate during 19X1?
4. How will what you learned in this problem help you manage a business?

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ARMORED FINANCIAL COURIERS, INC. ADJUSTED TRIAL BALANCE JUNE 30, 19X1 Cash... $ 19,350 Accounts receivable 26,470 Supplies. 1,290 Prepaid insurance... 3,200 Equipment. 55,800 Accumulated depreciation equipment.... $ 16,480 Building... 144,900 Accumulated depreciation-building. 16,850 Accounts payable. Interest payable... Wage payable........ Unearned service revenue 38,400 1,490 770 2,300 Note payable, long-term 97,000 Common stock.. 10,000 Retained earnings. 58,390 Dividends.... 45,300 Service revenue. 109,860 Depreciation expense-equipment. 7,300 Depreciation expense-building 3,970 Wage expense....... 18,800 Insurance expense. 3,100 Interest expense 11,510 Utilities expense. 4,300 Property tax expense. 2,670 Supplies expense.... 3,580 Total $351,540 $351,540