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, 2015, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2015
No.	Account Title	Debit				Credit
101	Cash		$	7,000
104	Short-term investments			23,000
126	Supplies			9,700
128	Prepaid insurance			8,800
167	Equipment			60,000
168	Accumulated depreciationEquipment						$	30,000
173	Building			153,000
174	Accumulated depreciationBuilding							51,000
183	Land			56,580
201	Accounts payable							16,500
203	Interest payable							2,400
208	Rent payable							3,600
210	Wages payable							2,800
213	Property taxes payable							1,400
233	Unearned professional fees							7,900
251	Long-term notes payable							69,500
301	O. Tybalt, Capital							128,300
302	O. Tybalt, Withdrawals			10,600
401	Professional fees earned							98,000
406	Rent earned							15,500
407	Dividends earned							2,200
409	Interest earned							2,100
606	Depreciation expenseBuilding			11,220
612	Depreciation expenseEquipment			9,000
623	Wages expense			31,000
633	Interest expense			3,700
637	Insurance expense			8,800
640	Rent expense			10,800
652	Supplies expense			5,200
682	Postage expense			4,000
683	Property taxes expense			4,700
684	Repairs expense			7,900
688	Telephone expense			3,000
690	Utilities expense			3,200
	Totals		$	431,200			$	431,200

O. Tybalt invested $7,000 cash in the business during year 2015 (the December 31, 2014, credit balance of the O. Tybalt, Capital account was $121,300). Tybalt Construction is required to make a $7,500 payment on its long-term notes payable during 2016.

Required:
1.1	Prepare the income statement for the calendar-year 2015.

1.2	Prepare the statement of owner's equity for the calendar-year 2015.

1.3	Prepare the classified balance sheet at December 31, 2015.

2.	Prepare the necessary closing entries at December 31, 2015.
	Closing entries (all dated December 31, 2015):

3.	Use the information in the financial statements to compute the following ratios:

References

WorksheetDifficulty: 3 HardLearning Objective: 04-C3 Explain and prepare a classified balance sheet.

Problem 4-4A Preparing closing entries, financial statements, and ratios LO C3, A1, P2Learning Objective: 04-A1 Compute the current ratio and describe what it reveals about a companys financial condition.Learning Objective: 04-P2 Describe and prepare closing entries.