The adjusted trial balance of Chase Webmaster Service at April 30. 20X2. after all adjustments, follows at the top of the next page. Adjusting data at April 30. 20X2. which have all been incorporated into the adjusted trial balance figures above, consist of

a. Accrued service revenue, $2,200.

b. Depreciation for the year: equipment. $6.900: building. $3.710.

c. Accrued wage expense. $830.

d. Unearned service revenue earned dur- ing the year. $4.180. Required

e. Supplies used during the year, $5,880.

f. Prepaid insurance expired during the year. $5,110. g. Accrued interest expense. $1.280. 1. Journalize the adjusting entries that would lead to the adjusted trial balance shown here. Also journalize the closing entries. 2. Prepare Chase's income statement and statement of owner's equity for the year ended April 30, 20X2, and the classified balance sheet on that date. Use the account format for the balance sheet. 3. Compute Chase's current ratio and debt ratio at April 30, 20X2. One year ago, the current ratio stood at 1.61 and the debt ratio was 0.72. Did Chase's ability to pay debts improve er deteriorate during fiscal year 20X2?