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 $ 6,500 Building 56,100 Accumulated DepreciationBuilding 25,000 Accounts Payable 42,000 Interest Payable 1,200 Salaries Payable 3,500 Unearned Revenue 1,300 Notes Payable (long-term) 30,100 Blume, Capital 30,000 Blume, Withdrawals 2,500 Service Revenue 75,800 Insurance Expense 800 Salaries Expense 15,700 Supplies Expense 1,600 Interest Expense Depreciation Expense-Equipment Depreciation Expense-Building 1,200 2,000 1,900 $ 215,400 $ 215,400 Total 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? Requirement 3. Prepare the company's classified balance sheet in report form at December 31, 2016. (If 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 Assets NII II Less: Less: Liabilities III Owner's Equity