The adjusted trial balance of Boston Irrigation System at December $31$ comma $2024,$follows:

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Part $1$

Requirement $1.$ Prepare the$$ company's income statement for the year ended December $31$ comma $2024.($If a box is not used in the$$ statement, leave the box$$ empty; do not select a label or enter a zero. Use a minus sign or parentheses to show a net$$ loss.$)$

Boston Irrigation System

Income Statement

Year Ended December $31,2024$

Net Income $($Loss$)$

Part $2$

Requirement $2.$ Prepare the$$ company's statement of retained earnings for the year ended December $31$ comma $2024.$ Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal.

Boston Irrigation System

Statement of Retained Earnings

Year Ended December $31,2024$

Retained Earnings, January $1,2024$

Retained Earnings, December $31,2024$

Part $3$

Requirement $3.$ Prepare the$$ company's classified balance sheet in report form at December $31$ comma $2024.($If a box is not used in the balance$$ sheet, leave the box$$ empty; do not select a label or enter a$$ zero.$)$

Part $4$

Boston Irrigation System

Balance Sheet

December $31,2024$

Assets

Less:

Less:

Liabilities

Stockholders' Equity

Part $5$

Requirement $4.$ Journalize the closing entries for Boston Irrigation System. $($Record debits$$ first, then credits. Select the explanation on the last line of the journal entry$$ table.$)$

Start by closing revenues.

Date

Accounts and Explanation

Debit

Credit

Dec. $31$

Clos. $(1)$

Part $6$

Close expenses for the period.

Date

Accounts and Explanation

Debit

Credit

Dec. $31$

Clos. $(2)$

Part $7$

Close Income Summary.

Date

Accounts and Explanation

Debit

Credit

Dec. $31$

Clos. $(3)$

Part $8$

Close Dividends.

Date

Accounts and Explanation

Debit

Credit

Dec. $31$

Clos. $(4)$

Part $9$

Requirement $5.$ Compute the$$ company's current ratio at December $31$ comma $2024.$ At December $31$ comma $2023,$ the current ratio was $2\mathrm{.}3.$ Did the$$ 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

$-$:

$=$

Part $10$

Since the current ratio was $2\mathrm{.}3$ one year$$ ago, Boston's ability to pay its current liabilities has

$$

remained the same

improved

deteriorated

$.$