Question
Account Title Styles Pane Dictate Editor Dr Cr Accounts payable Accounts Receivable Accumulated Depreciation Building Accumulated Depreciation Equipment Building Cash Depreciation expense, building Depreciation expense,
Account Title
Styles
Pane
Dictate
Editor
Dr
Cr
Accounts payable
Accounts Receivable
Accumulated Depreciation Building
Accumulated Depreciation Equipment
Building
Cash
Depreciation expense, building
Depreciation expense, equipment
Insurance expense
Interest payable
Land
Long-term note payable
Misty Jam. Capital
9,000
6,300
41,000
$4,200
350,000
$98,000
7,000
800
5,200
700,000
2,000
52.000
Misty Jam, Withdrawals Office equipment
Office supplies
Prepaid Insurance
Prepaid Rent
Rent expense
Salaries expense
Salaries payable
Service fees earned
Totals
200,500
8,000
3,300
9,000
15,000
6,000
89,000
I
$1,500,800
Additional Information:
- A $8,000 installment on the long-term note payable is due within one year.
- Misty Jam invested $25,000 into her business during the year.
Required:
Prepare in an Income Statement for the Year Ended December 31, 2026.
- Prepare a Statement of Owner's Equity for the Year Ended December 31, 2026.
- Prepare a Classified Balance Sheet as at December 31, 2026.
- Calculate Working Capital, the Current Ratio and Acid-Test Ratio at December 31, 2026 and comment on the company's liquidity.
- Prepare the Closing Entries at December 31, 2026 in a general journal.
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