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:

1. A $8,000 installment on the long-term note payable is due within one year.
2. Misty Jam invested $25,000 into her business during the year.

Required:

Prepare in an Income Statement for the Year Ended December 31, 2026.

1. Prepare a Statement of Owner's Equity for the Year Ended December 31, 2026.
2. Prepare a Classified Balance Sheet as at December 31, 2026.
3. Calculate Working Capital, the Current Ratio and Acid-Test Ratio at December 31, 2026 and comment on the company's liquidity.
4. Prepare the Closing Entries at December 31, 2026 in a general journal.