Problem 4-4A Preparing closing entries, financial statements, and ratios LO C3, A1, P2

The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017
No.	Account Title	Debit				Credit
101	Cash	$	5,500
104	Short-term investments		22,500
126	Supplies		9,400
128	Prepaid insurance		7,100
167	Equipment		60,000
168	Accumulated depreciationEquipment					$	30,000
173	Building		150,000
174	Accumulated depreciationBuilding						50,000
183	Land		67,800
201	Accounts payable						16,000
203	Interest payable						2,600
208	Rent payable						3,700
210	Wages payable						2,500
213	Property taxes payable						700
233	Unearned professional fees						7,100
251	Long-term notes payable						69,000
301	O. Tybalt, Capital						127,000
302	O. Tybalt, Withdrawals		12,400
401	Professional fees earned						104,000
406	Rent earned						18,000
407	Dividends earned						2,900
409	Interest earned						2,300
606	Depreciation expenseBuilding		11,000
612	Depreciation expenseEquipment		9,000
623	Wages expense		30,000
633	Interest expense		3,000
637	Insurance expense		7,200
640	Rent expense		13,200
652	Supplies expense		7,100
682	Postage expense		2,100
683	Property taxes expense		4,700
684	Repairs expense		7,900
688	Telephone expense		2,600
690	Utilities expense		3,300
	Totals	$	435,800			$	435,800

O. Tybalt invested $5,500 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $121,500). Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2018. Required: 1a. Prepare the income statement for the calendar-year 2017. 1b. Prepare the statement of owner's equity 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: