Question
The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 No. Account Title Debit
The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows.
TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 | |||||||||
No. | Account Title | Debit | Credit | ||||||
101 | Cash | $ | 6,500 | ||||||
104 | Short-term investments | 22,000 | |||||||
126 | Supplies | 8,000 | |||||||
128 | Prepaid insurance | 8,300 | |||||||
167 | Equipment | 50,000 | |||||||
168 | Accumulated depreciationEquipment | $ | 25,000 | ||||||
173 | Building | 162,000 | |||||||
174 | Accumulated depreciationBuilding | 54,000 | |||||||
183 | Land | 68,020 | |||||||
201 | Accounts payable | 16,500 | |||||||
203 | Interest payable | 3,000 | |||||||
208 | Rent payable | 3,200 | |||||||
210 | Wages payable | 2,400 | |||||||
213 | Property taxes payable | 1,200 | |||||||
233 | Unearned professional fees | 7,400 | |||||||
251 | Long-term notes payable | 68,000 | |||||||
301 | O. Tybalt, Capital | 132,800 | |||||||
302 | O. Tybalt, Withdrawals | 10,000 | |||||||
401 | Professional fees earned | 100,000 | |||||||
406 | Rent earned | 15,500 | |||||||
407 | Dividends earned | 2,000 | |||||||
409 | Interest earned | 2,400 | |||||||
606 | Depreciation expenseBuilding | 11,880 | |||||||
612 | Depreciation expenseEquipment | 7,500 | |||||||
623 | Wages expense | 28,500 | |||||||
633 | Interest expense | 4,800 | |||||||
637 | Insurance expense | 7,300 | |||||||
640 | Rent expense | 11,600 | |||||||
652 | Supplies expense | 7,100 | |||||||
682 | Postage expense | 3,500 | |||||||
683 | Property taxes expense | 3,100 | |||||||
684 | Repairs expense | 7,800 | |||||||
688 | Telephone expense | 2,100 | |||||||
690 | Utilities expense | 3,400 | |||||||
Totals | $ | 433,400 | $ | 433,400 | |||||
O. Tybalt invested $6,500 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $126,300). Tybalt Construction is required to make a $8,500 payment on its long-term notes payable during 2018. Required: 1a. Prepare the income statement for the calendar-year 2017. 1b. Prepare the statement of owner's equity for the calendar-year 2017. 1c. Prepare the classified balance sheet at December 31, 2017. 2. Prepare the necessary closing entries at December 31, 2017. 3. Use the information in the financial statements to compute the following ratios:
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