Blume Irrigation System Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash $ 49,710 Accounts Receivable 47,500 Office Supplies 3,790 Prepaid Insurance 4,600 Equipment 28,000 Accumulated Depreciation-Equipment S 6.500 Building 56,100 Accumulated Depreciation-Building Accounts Payable 25,000 42,000 Interest Payable 1,200 Salaries Payable Uneamed Revenue Notes Payable (long-term) Blume, Capital Blume, Withdrawals Service Revenue 3,500 1,300 30,100 30,000 2,500 75.800 Insurance Expense 800 Salaries Expense 15,700 Supplies Expense 1,000 Interest Expense 1,200 Depreciation Expense-Equipment 2.000 Depreciation Expense-Building 1.900 Total 215,400 $ 215,400 ende Requirements - 1. Prepare the company's income statement for the year ended December 31, 2016. 2. Prepare the company's statement of owner's equity for the year ended December 31, 2016. Assume that there were no contributions made by the owner during the year. 3. Prepare the company's classified balance sheet in report form at December 31, 2016. 4. Journalize the closing entries for Blume Irrigation System. 5. Compute the company's current ratio at December 31, 2016. At December 31, 2015, the current ratio was 1.8. Did the company's ability to pay debts improve or deteriorate, or did it remain the same? then continue to the next question. Print Done MacBook Air X The adjusted trial balance of Blume Irrigation System at December 31, 2016, follows (Click the icon to view the adjusted trial balance) Read the requirements Requirement 1. Prepare the company's income statement for the year ended December 31, 2016 of a box is not used 5) Blume Irrigation System name Statement Year Ended December 31, 2016 statement, leave the box empty, do not select a laber Requirement 2. Prepare the company's statement of owner's equity for the year ended December 31, 2018 Assume that there were no contributions made by the owner during the year Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal (Use a minus sign or parentheses to show a decrease in capital Exclude any zero-balance events for the period from the statement of owner's equity) Blume Irrigation System Statement of Owner's Equity Year Ended December 31, 2018 Blume, Capital January 1, 2016 Bume Capital, December 31, 2016 Requirement 3. Prepare the company's classifed balance sheet in report form at December 31, 2016. (f a box is not used in the balance sheet, leave the box empty, do not select a label or enter a zero.) Blume Irrigation System Balance Sheet December 31, 2016 Las Assets Choose from any list or enter any number in the input fields and then continue to the next question Read the requirements. Less: Liabilities Owner's Equity Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. Joumalize the closing entries for Blume Irrigation System. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.). Start by closing revenues. Date Dec. 31 Clos (1) Close expenses for the period. Date Dec. 31 Clos (2) Accounts and Explanation Debit Credit Accounts and Explanation - Debit Credit Choose from any list or enter any number in the input telds and then continue to the next g Close Income Summary. Date Dec. 31 Clos. (3) Close withdrawals. Date Dec. 31 Clos. (4) Accounts and Explanation Debit Credit Accounts and Explanation Debit Credit Requirement 5. Compute the company's cument ratio at December 31, 2016. At December 31, 2015, the current ratio was 1.8. Did the company's ability to pay debts improve or deteriorate, or did it remain the same? Select the labels then enter the amounts and compute the current ratio. (Round your answer to two decimal pines) Current ratio Since the current ratio was 1.8 one year ago, Blume's ability to pay its current abities has