Savory Ltd. is completing the information-processing cycle at its fiscal year-end, December 31. Following are the correct account balances at December 31, both before and after the adjusting entries. Items a. Cash b. Service revenue receivable c. Prepaid insurance d. Equipment e. Accumulated depreciation, equipment f. Accrued advertising payable g. Contributed capital h. Retained earnings, January 1 i. Service revenue j. Salary expense k. Depreciation expense 1. Insurance expense m. Advertising expense Trial Balance, December 31 of the Current Year UNADJUSTED ADJUSTED Debit $ 12,600 Credit Debit $ 12,600 560 Credit 840 168,280 560 168,280 $ 42,100 $ 54,000 112,000 19,600 64,400 6,580 112,000 19,600 64,960 56,380 56,380 11,900 280 6,580 $ 238,100 $238,100 $257,140 $ 257,140 Required: 1. Compare the amounts in the columns before and after the adjusting entries to reconstruct the adjusting entries made at the end of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Compute the earnings per share, assuming that 4,000 shares are outstanding all year. (Round the final answer to 2 decimal places.) Earnings per share 4. Compute the net profit margin ratio and the return on equity, assuming that contributed capital did not change during the year. (Round percentage answer to 1 decimal place (i.e., 0.124 should be entered as 12.4).) Net profit margin ratio % Return on equity % 5. Prepare the closing entries at December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 No Transaction Recorded 2 2 No Transaction Recorded 3 3 No Transaction Recorded