Coastal Creations Adjusted Trial Balance June 30, 2023 Account Debit Credit Cash $12,610 Accounts receivable 15,882 Supplies 18,774 Prepaid insurance 1,920 Equipment 33,480 Accumulated amortizationequipment $9,888 Building 68,940 Accumulated amortizationbuilding 10,110 Land 18,000 Accounts payable 25,040 Interest payable 1,894 Salaries payable 1,462 Unearned service revenue 1,380 Note payable, long-term 58,200 A. Kapoor, capital 41,034 A. Kapoor, withdrawals 28,180 Service revenue 83,916 Amortization expenseequipment 4,380 Amortization expensebuilding 2,382 Salaries expense 13,882 Insurance expense 1,860 Interest expense 7,906 Utilities expense 2,580 Supplies expense 2,148 Total $232,924 $232,924. The adjusted trial balance of Creations at , , the end of the company's fiscal year, is provided. LOADING... (Click the icon to view the adjusted trial balance.) Required 1. Prepare the income statement and statement of owner's equity for the year ended june ,30 ,2023 and the classified balance sheet on that date. Use the account format for the balance sheet. 2. Journalize the closing entries. 3. Compute Creations's current ratio and debt ratio at june ,30, 2023 . One year ago, the current ratio stood at 1.81 and the debt ratio was 0.71. Did coastal Creations's ability to pay debts improve or deteriorate during the fiscal year? Question content area bottom Part 1 Requirement 1. Prepare the income statement and statement of owner's equity for the year ended , , and the classified balance sheet on that date. Use the account format for the balance sheet. Prepare the income statement. Start by completing the heading, and then choose the accounts and enter the corresponding amounts. (Use parentheses or a minus sign to indicate a net loss.)