Problem 4-5A Preparing closing entries, financial statements, and ratios LO C3, A1, P2

The adjusted trial balance for Tybalt Construction as of December 31, 2013, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2013
No.	Account Title	Debit				Credit
101	Cash		$	6,500
104	Short-term investments			23,000
126	Supplies			9,200
128	Prepaid insurance			8,300
167	Equipment			40,000
168	Accumulated depreciationEquipment						$	20,000
173	Building			156,000
174	Accumulated depreciationBuilding							52,000
183	Land			73,360
201	Accounts payable							16,500
203	Interest payable							2,900
208	Rent payable							3,700
210	Wages payable							2,100
213	Property taxes payable							1,400
233	Unearned professional fees							8,000
251	Long-term notes payable							67,000
301	O. Tybalt, Capital							128,300
302	O. Tybalt, Withdrawals			10,200
401	Professional fees earned							98,000
406	Rent earned							16,000
407	Dividends earned							2,500
409	Interest earned							3,000
606	Depreciation expenseBuilding			11,440
612	Depreciation expenseEquipment			6,000
623	Wages expense			28,000
633	Interest expense			4,600
637	Insurance expense			7,800
640	Rent expense			11,600
652	Supplies expense			6,700
682	Postage expense			2,900
683	Property taxes expense			3,200
684	Repairs expense			6,200
688	Telephone expense			2,100
690	Utilities expense			4,300
	Totals		$	421,400			$	421,400

O. Tybalt invested $6,500 cash in the business during year 2013 (the December 31, 2012, credit balance of the O. Tybalt, Capital account was $121,800). Tybalt Construction is required to make a $8,500 payment on its long-term notes payable during 2014.

Required:
1.1	Prepare the income statement for the calendar-year 2013.

1.2	Prepare the statement of owner's equity for the calendar-year 2013.

1.3	Prepare the classified balance sheet at December 31, 2013.

2.	Prepare the necessary closing entries at December 31, 2013.
	Closing entries (all dated December 31, 2013):

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

a) return on assets ( total assets at december 31, 2012 was 200,000$

b) debt ratio

c) profit margin ration

d) current ratio