The adjusted trial balance for the year of Dreamer Corporation at May 31, 2021. follows 2 (Click the icon to view the adjusted trial balance.) Read the requirements Requirement 1. Prepare Dreamer Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet Begin by preparing Dreamer's 2021 Income statement. Dreamer Corporation Income Statement Year Ended May 31, 2021 Income before tax The adjusted trial balance for the year of Dreamer Corporation at May 31, 2021, follows. Click the icon to view the adjusted trial balance.) Read the requirements Income before tax TI Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement.) Dreamer Corporation Statement of Retained Earnings Year Ended May 31, 2021 Add: Subtotal Less: Prepare the balance sheet. (If an input field is not used in the balance sheet leave the field empty, do not select a label or enter a zero. Do not cloself the holenre ehaat ini mirant and inn.torm corinne Prepare the balance sheet. (If an input field is not used in the balance sheet leave the field empty; do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections.) Dreamer Corporation Balance Sheet May 31, 2021 Llabilities Assets Stockholders' Equity Less Stockholders' Equity Less Requirement 2. Dreamer's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Dreamer's debt ratio at May 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Dreamer could have avoided this difficult situation Begin by selecting the labels and then enter the amounts to compute Dreamer's debt ratio at May 31, 2021. (Round your calculation to places.) docimal Debt ratio with this debt restriction at Dreamer's lenders require that the company maintain a debt ratio no higher than 0.50. Dreamer is May 31, 2021 Data table Dreamer Corporation Adjusted Trial Balance May 31, 2021 Account Debit Credit Cash $ 18,000 18,600 2,200 1,000 37,400 $ Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable 4,900 8,700 300 200 2,700 18,300 Common stock 13.000 X itt Data table 300 200 Interest payable Unearned service revenue Income tax payable Note payable 2,700 18,300 Common stock 13,000 3,000 8,000 Retained earnings Dividends Service revenue Depreciation expense-equipment 103,200 Salary expense Rent expense Interest expense 1,900 40,500 10,500 3,500 4,000 2,100 6,600 at Jided Insurance expense Supplies expense Income tax expense b two $ 154,300 $ 154,300 Total Done estric ire Print w the adjusted trial balance.) nents Requirements 1. Prepare Dreamer Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet. 2. Dreamer's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Dreamer's debt ratio at May 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Dreamer could have avoided this difficult situation. H Print Done he DUUE TCU require that the company maintain a debt ratio no higher than 0.50. Dreamer is with
