Requirement 4. Joumalize the closing entries for Blume Irrigation System. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Start by closing revenues. Date Dec. 31 Clas (1) Accounts and Explanation Debit Credit Close expenses for the period. Date Dec. 31 Clas(2) Close Income Summary Date Dec. 31 Clos. (3) Accounts and Explanation Debit Credit Accounts and Explanation Debit Credit Close withdrawals. Date Accounts and Explanation Debit Credit Dec. 31 Clas. (4) Requirement 6. Compute the company's current ratio at December 31, 2016. At December 31, 2015, the current ratio was 1.8. Did the company's ability to pay debts improve or deteriorate, or did it remain the same? Select the labels then enter the amounts and compute the current ratio. (Round your answer to two decimal places.) = = Current ratio Since the current ratio was 1.8 one year ago, Blume's ability to pay its current liabilities has Blume Irrigation System Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash $ 49,710 Accounts Receivable 47,500 Office Supplies 3,790 Prepaid Insurance 4,600 Equipment 28,000 Accumulated Depreciation-Equipment $ 6,500 Building 56,100 Accumulated Depreciation-Building Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Blume, Capital Blume, Withdrawals 25,000 42,000 1,200 3,500 1,300 30,100 30,000 2,500 upplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Building Accumulated Depreciation-Building Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Blume, Capital Blume, Withdrawals Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Depreciation Expense-Equipment Depreciation Expense-Building Total 3,790 4,600 28,000 $ 6,500 56,100 25,000 42,000 1,200 3,500 1,300 30,100 30,000 2,500 75,800 800 15,700 1,600 1,200 2,000 1,900 $ 215,400 $ 215,400