Covington Creations Adjusted Trial Balance June 30, 2023 \begin{tabular}{l||r||r||l|} \hline \multicolumn{1}{|c||}{ Account } & \multicolumn{2}{c|}{} \\ \hline \multicolumn{1}{|c||}{ Debit } & Credit \\ \hline Cash & \$ & \multicolumn{1}{c|}{13,400} & \\ Accounts receivable & 15,883 & \\ Supplies & 18,786 & \\ Prepaid insurance & 1,900 & \\ Equipment & 33,480 & \\ Accumulated amortization-equipment & & $10,400 \\ \hline \end{tabular} \begin{tabular}{l||r||r|r|} \hline Building & 86,000 & \\ Accumulated amortization - building & & 10,200 \\ Land & 26,000 & \\ Accounts payable & 25,160 \\ Interest payable & 3,200 \\ Salaries payable & 1,453 \\ Unearned service revenue & 1,380 \\ Note payable, long-term & & 58,400 \\ A. Krause, capital & 69,584 \\ A. Krause, withdrawals & \\ Service revenue & & \\ Amortization expense equipment & 4,430 & \\ \hline \end{tabular} A. Krause, capital A. Krause, withdrawals Service revenue Amortization expense equipment Amortization expense-building Salaries expense Insurance expense Interest expense Utilities expense Supplies expense Total The adjusted trial balance of Covington Creations at June 30,2023 , the end of the company's fiscal year, is provided. (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 Covington Creations's current ratio and debt ratio at June 30, 2023. One year ago, the current ratio stood at 1.76 and the debt ratio was 1.07. Did Covington Creations's ability to pay debts improve or deteriorate during the fiscal year? The adjusted trial balance of Covington Creations at June 30, 2023, the end of the company's fiscal year, is provided. (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. Compule Covington Creations's current ratio and debt ratio at June 30, 2023. One year ago, the current ratio stood at 1.76 and the debt ratio was 1.07. Did Covingtion Creations's ablity to pay debts improve or deteriorate during the fiscal year