0 Data Table Credit Griffith Corporation Adjusted Trial Balance December 31, 2018 Account Debit Cash $ 16,000 Accounts receivable 18,600 Supplies 2,100 Prepaid rent 1,800 Equipment 37,400 Accumulated depreciation- equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends 10,000 Service revenue Depreciation expense- equipment 2,000 Salary expense 40,700 Rent expense 10,800 Interest expense 2,900 Insurance expense 4,200 Supplies expense 2,200 Income tax expense 7,300 Total $ 156,000 $ 4,600 9,300 400 600 2,900 18,100 19,000 4,000 97,100 156,000 Print Print Done Done Requirement 1. Prepare Griffith Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Griffith's 2018 income statement. Griffith Corporation Income Statement Year Ended December 31, 2018 Income before tax Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement.) Griffith Corporation Statement of Retained Earnings Year Ended December 31, 2018 Add: Subtotal Less: Prepare the balance sheet. (If a box is not used in the balance sheet leave the box empty; do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections.) Prepare the balance sheet. (If a box is not used in the balance sheet leave the box empty; do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections.) Griffith Corporation Balance Sheet December 31, 2018 Assets Liabilities Stockholders' Equity Less: Requirement 2. Griffith's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Griffith's debt ratio at December 31, 2018, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Griffith could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Griffith's debt ratio at December 31, 2018. (Round your calculation to two decimal places.) = Debt ratio Griffith's lenders require that the company maintain a debt ratio no higher than 0.50. Griffith is with this debt restriction at December 31, 2018