Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 Account Title Credit 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 $ 6,000 25,000 9,200 9,000 45,000 Accumulated depreciation -Equipment s 22,500 173 Building 168,000 Accumulated depreciation 174_Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 56,000 61,330 17,000 2,300 3,000 1,500 Unearned professional fees 7,600 68,500 6,000 124,300 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 10,000 103,000 15,500 2,300 2,000 Depreciation expense- 606 Building 12,320 Depreciation expense- Equipment 6,750 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense 30,000 4,200 8,500 10,800 5,100 4,100 4,800 8,300 2,100 4,400 Totals $434,900 $434,900 The December 31, 2016, credit balance of the Retained Earnings account was $124,300. Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2018 1a. Prepare the income statement for the calendar-year 2017. 1b. Prepare the statement of retained earnings for the calendar-year 2017. 1c. Prepare the classified balance sheet at December 31, 2017 2. Prepare the necessary closing entries at December 31, 2017 3. Use the information in the financial statements to compute the following ratios