Completing the Accounting Cycle 227 A Preparing financial statements including a classified balance sheet in report form, preparing closing entries, and using the current ratio to p4-30 Learning Objectives 1, 3,6 evaluate a company The adjusted trial balance of Boston Irrigation System at December 31, 2018, follows 2 Ending Capital $80,200 BOSTON IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2018 Balance DebitCredit Account Title Cash 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) Boston, Capital Boston, Withdrawals Service Revenue Insurance Expense Salaries Expense Supplies Expense interest Expense 5 11,800 46,000 29,500 6,300 63,000 s 25,000 28,000 7.700 32,100 2,200 2,600 2,100 32,700 33,000 2,200 74,500 1,100 16,400 1.100 2,200 2,500 1,800 S 211,900 Depreciation Expense-Building Total 211,900 1. Prepare the company's income statement for the year ended December 31, 2018. 2. Prepare the state Requirements 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. 3. Prepare compute the company's current ratio at December 31, 2018 At December 31, 2017, the current ratio was 2.3. Did the company' ability to pay current debs . Journalize the closing entries for Boston Irrigation System 5. prove or deteriorate, or did it remain the same