Brinney Irrigation System Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash s 15,600 47.000 30,100 6.200 58.000 $ 24,700 24,000 5,800 36,500 1,500 Accounts Receivable Office Supplies Prepaid Insurance Building Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Retained Earnings Dividends Service Revenue Insurance Expense Salaries Expanse Supplies Expense Interest Expense Depreciation Expense Equipment Depreciation Expense Building 3,300 1.700 30,800 15.000 31.000 2.800 58,500 500 17.100 1.000 1.500 2.400 1,600 Total 5 207,800'S 207,800 Requirements 1. Prepare the company's income statement for the year ended December 31, 2018 2. Prepare the company's statement of retained earnings for the year ended December 31, 2018 3. Prepare the company's classified balance sheet in report form at December 31, 2018. 4. Journalize the closing entries for Brinney Irrigation System. 5. Compute the company's current ratio at December 31, 2018. At December 31, 2017, the current ratio was 2.2. Did the company's ability to pay debts improve or deteriorate, or did it remain the same? Requirement 1. Prepare the company's incomo statoerent for the year ended December 31, 2018. Of a box is not lined in the statement, love the box empty, do not selecta label or enterer. Use a minun parenthosen to show not loss.) Brinney Irrigation System Income Statement Year Ended December 31, 2010 Net Income Los Requirement 2. Prepare the company's statement of retained earnings for the year ended December 31, 2018. Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. Brinney Irrigation System Statement of Retained Earnings Year Ended December 31, 2018 Retained Earnings, January 1, 2018 Retained Earnings, December 31, 2018 Requirement 3. Prepare the company's classified balance sheet in report form at December 31, 2018. (If a box is not used in the balance sheet, leave the box empty: do not select a label or enter a zero.) Brinney Irrigation System Balance Sheet December 31, 2018 Assets THE Less: Less: I Liabilities Stockholders' Equity Requirement 4. Joumalize the closing entries for Brinney Irrigation System. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Start by closing revenues. Date Accounts and Explanation Debit Credit Dec 31 Clos. (1) Close expenses for the period. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (2) Close Income Summary. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (3) Close Dividends. Date Accounts and Explanation Debit Credit Dec. 31 Clos. (4) Requirement 5. Compute the company's current ratio at December 31, 2018. At December 31, 2017, the current ratio was 2.2. 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 places.) Current ratio Since the current ratio was 2.2 one year ago, Brinney's ability to pay its current liabilities has
