The adjusted trial balance of Martinez Consulting Service, Inc., at April 30, 19X2, the end of the company's fiscal year, follows:

Adjusting data at April 30, 19X2, which have been incorporated into the trial balance figures above, consist of:

a. Unearned service revenue earned during the year, \(\$ 4,180\).

b. Supplies used during the year, \(\$ 5,880\).

c. Prepaid insurance expired during the year, \(\$ 5,370\).

d. Accrued interest expense, \(\$ 1,280\).

e. Accrued service revenue, \(\$ 2,200\).

f. Depreciation for the year: equipment, \(\$ 6,900\); building, \(\$ 3,710\).
g. Accrued wage expense, \(\$ 830\).
\section*{Required}
1. Journalize the adjusting and closing entries.
2. Prepare Martinez's income statement and statement of retained earnings for the year ended April 30, 19X2, and the classified balance sheet on that date. Use the account format for the balance sheet.
3. Compute Martinez's current ratio and debt ratio at April 30, 19X2. One year ago the current ratio stood at 1.21, and the debt ratio was 0.82 . Did Martinez's ability to pay debts improve or deteriorate during 19X2?
4. How will what you learned in this problem help you manage a business?

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MARTINEZ CONSULTING SERVICE, INC. ADJUSTED TRIAL BALANCE APRIL 30, 19X2 Cash......... $ 1,370 Accounts receivable 23,740 Supplies. 3,690 Prepaid insurance.. 2,290 Equipment... 63,930 Accumulated depreciation-equipment.. S 28,430 Building.. 74,330 Accumulated depreciation-building. 18,260 Accounts payable. 19,550 Interest payable... 2,280 Wage payable.. 830 Unearned service revenue 3,660 Note payable, long-term 69,900 Common stock.. 10,000 Retained earnings. 34,200 Dividends... 47,500 Service revenue. 98,550 Depreciation expense-equipment 6,900 Depreciation expense-building. 3,710 Wage expense... 29,800 Insurance expense. 5,370 Interest expense 8.170 Utilities expense... +,970 Property tax expense. 3.010 Supplies expense 6,880 Total $285,660 $285,660