Prepare the adjusting entries, and post to the accounts. T-accounts have been opened using the balances from the unadjusted trial balance.
2.	Prepare an adjusted trial balance.
3.	Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form. (Assume that there were no contributions made by the owner during the year.)
4.	Prepare the closing entries, and post to the accounts.
5.	Prepare a post-closing trial balance.
6.	Calculate the current ratio for the company.

Requirement 1. Prepare the adjusting entries, and post to the accounts. T-accounts have been opened using the balances from the unadjusted trial balance.

Begin by preparing the adjusting entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

a. Unearned Revenue still unearned at December 31, $2,900.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Unearned Revenue

2900

Adj. (a)

Service Revenue

2900

To adjust revenue earned.

Part 2

b. Prepaid Rent still in force at December 31, $2,800.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Rent Expense

110

Adj. (b)

Prepaid Rent

110

To adjust rent expense.

Part 3

c. Office Supplies used, $600.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Supplies Expense

600

Adj. (c)

Office Supplies

600

To record office supplies used.

Part 4

d. Depreciation, $350.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Depreciation ExpenseEquipment

350

Adj. (d)

Accumulated DepreciationEquipment

350

To record depreciation on equipment.

Part 5

e. Accrued Salaries Expense at December 31, $230.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Salaries Expense

230

Adj. (e)

Salaries Payable

230

To adjust accrued salaries.

Post the adjusting entries to the T-accounts. The unadjusted balances of the accounts ("Bal.") have been entered for you. Use the adjustment and corresponding letters as posting

references"Adj.

(a)", "Adj. (b)", etc. Use a "Bal." posting reference on the last line of each T-account to show the adjusted balance of each account. (Abbreviations used: Depr. = Depreciation; Equip. = Equipment.)

Requirement 2. Prepare an adjusted trial balance.

equirement 3. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form. Assume that there were no contributions made by the owner during the year.

Begin by preparing the income statement. (If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.)

Prepare the statement of owner's equity. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. Assume that there were no contributions made by the owner during the year. (Exclude any zero-balance events for the period from the statement of owner's equity.)

Prepare the classified balance sheet in report form as of December 31, 2024. Begin with the Assets section, then complete the Liabilities and Owner's Equity sections. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.)

Requirement 4. Prepare the closing entries, and post to the accounts.

Begin by preparing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Start by closing revenue.

Close expenses for the period.

Close Income Summary.

Close withdrawals.

Post the closing entries to the T-accounts. First, enter "Bal." and the adjusted balance of each account from the adjusted trial balance prepared in requirement 2. Then, use "Clos." and the corresponding number as shown in the journal entry as posting

references"Clos.(1)",

"Clos.(2)", etc. Post any closing entries to the accounts and then calculate the post-closing balance ("Bal.") of each account (including those that were not closed). For any accounts with a zero balance afterclosing, enter a "0" on the normal side of the account. For Income Summary, calculate and enter the balance ("Bal.") before posting the entry to close out the account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing (the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account. (Abbreviations used: Depr. = Depreciation; Equip. = Equipment.)

Requirement 5. Prepare a post-closing trial balance.

equirement 6. Calculate the current ratio for the company.

Select the labels then enter the amounts and compute the current ratio. (Round your answer to two decimal places

Wonder Anvils Unadjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Wonder, Capital Wonder, Withdrawals Service Revenue Salaries Expense Balance Debit 7,490 18,000 2,910 1,600 33,000 3,000 2,600 $ Credit 4,000 7,000 0 6,600 27,500 23,500 Account Title Cash Accounts Receivable Prepaid Rent Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Wonder, Capital Wonder, Withdrawals Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Total Debit 7,490 18,000 2,910 1,600 33,000 3,000 2,600 0 0 0 68,600 $ Credit 4,000 7,000 0 6,600 27,500 23,500 68,600