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.

O. Tybalt invested $5,000 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $125,200). Tybalt Construction is required to make a $6,000 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:

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 Account Title Credit No 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 251 Long-term notes payable 301 O. Tybalt, Capital 302 O. Tybalt, Withdrawals 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 612 Depreciation expense-Equipment 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 Debit $ 5,000 24,000 8,200 7,400 60,000 $ 30,000 150,000 50,000 60,900 16,000 2,700 3,900 2,700 1,200 7,900 66,500 130,200 11,300 102,000 15,500 2,600 2,100 11,000 9,000 31,500 3,900 9,600 13,100 7,300 2,900 4,500 7,900 1,600 4,200 Totals $433,300 $433,300