The December 31, 2017, credit balance of the Retained Earnings account was $123,600. Tybalt Construction is required to make a $8,000 payment on its long-term notes payable during 2019. Required: 1a. Prepare the income statement for the calendar-year 2018. 1b. Prepare the statement of retained earnings for the calendar-year 2018. 1c. Prepare the classified balance sheet at December 31, 2018. 2. Prepare the necessary closing entries at December 31, 2018. 3. Use the information in the financial statements to compute the following ratios:

TYBALT CONSTRUCTION Income Statement For Year Ended December 31, 2018 Revenues Total revenues Expenses Total expenses TYBALT CONSTRUCTION Statement of Retained Earnings For Year Ended December 31, 2018 Retained earnings, Dec. 31, 2017 Retained earnings, Dec 31, 2018 Credit $ Debit 5,000 24,500 8,600 7,900 60,000 $ 30,000 150,000 50,000 68,000 TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2018 No. Account Title 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 251 Long-term notes payable 307 Common stock 318 Retained earnings, December 31, 2017 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense Totals 16,000 2,800 3,700 2,000 1,300 7,200 68,000 5,000 123,600 12,600 105,000 15,000 2,300 2,600 11,000 9,000 28,000 4,700 7,800 11,900 6,500 3,200 3,400 6,200 2,000 4,200 $434,500 $434,500 Journal entry worksheet 2 3 4 Record the entry to close the revenue account(s). Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet