1. Prepare Nicholl Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet.

2. Nicholl's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Nicholl's debt ratio at October 31, 2021, to determine whether the company is in compliance with this debt restriction. not, suggest a way that Nicholl could have avoided this difficult situation.

Data table

Requirement 1. Prepare Nicholl Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet. Begin by preparing Nicholl's 2021 income statement. (Check your spelling carofully and do not abbreviate. Use only the account names provided in the adjusted trial balance.) Aeat the ravertents Dake inse All of the following events at a retall store are transactions except A. The accountant for the store pays the electric bill. B. A representative from a regional restaurant chain contacts the store manager to get a list of wholesale prices. C. A delivery of hand sanitizer purchased on account from the local manufacturer is received. D. A customer purchases a pack of paper towels. In a double-entry accounting system, A. half of all the accounts have a normal credit balance. B. a debit entry is recorded on the left side of a T-account. C. liabilities, stockholders' equity, and revenue accounts all have normal debit balances. D. both a and b are correct. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{\begin{tabular}{c} Nicholl Corporation \\ Adjusted Trial Balance \\ October 31,2021 \\ \end{tabular}} \\ \hline Account & & Debit & Credit \\ \hline Cash & $ & 16,000 & \\ \hline Accounts receivable & & 19,100 & \\ \hline Supplies & & 2,400 & \\ \hline Prepaid rent & & 1,400 & \\ \hline Equipment & & 37,100 & \\ \hline Accumulated depreciation-equipment & & $ & 4,300 \\ \hline Accounts payable & & & 9,100 \\ \hline Interest payable & & & 300 \\ \hline Unearned service revenue & & & 200 \\ \hline Income tax payable & & & 2,900 \\ \hline Note payable & & & 18,700 \\ \hline Common stock & & & 15,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Interest payable & & & 300 \\ \hline Unearned service revenue & & & 200 \\ \hline Income tax payable & & & 2,900 \\ \hline Note payable & & & 18,700 \\ \hline Common stock & & & 15,000 \\ \hline Retained earnings & & & 3,000 \\ \hline Dividends & & 6,000 & \\ \hline Service revenue & & & 95,500 \\ \hline Depreciation expense-equipment & & 1,800 & \\ \hline Salary expense & & 40,000 & \\ \hline Rent expense & & 10,500 & \\ \hline Interest expense & & 2,600 & \\ \hline Insurance expense & & 3,300 & \\ \hline Supplies expense & & 2,000 & \\ \hline Income tax expense & & 6,800 & \\ \hline Total & $ & 149,000 \$ & 149,000 \\ \hline \end{tabular}