The following is a list of month-end account balances on October 31, 2020 Accounts Payable $4,800 Cash $7,300 Salaries Expense $2,500 Bank Loan $5,500 Services Revenue $18,500 Rent Expense $3,300 Common Stock $15,000 Telephone expense $1,800 Accounts Receivable $5,600 Utilities Expense $1,200 Furniture and Fixtures $6,300 Equipment $10,200 Office Supplies $1,300 Office Supplies Expense $4,300 ASSEST or EXPENSES = DEBITS; an increase in Assets or Expenses and a decrease in Liabilities or Owner's Equity (for this activity, all Assets & Liabilities are current) LIABILITIES OR OWNER'S EQUITY - CREDITS, decreases in Assets or Expenses and increases in Liabilities or Owner's Equity Complete the following: 1) Categorize all entries as either an Asset, Expense, Liability, or Owner's Equity 1) Create a Debit/Credit Trial Balance (T-account). Debits (Assets and Expenses) Credits (Liabilities & Owner's Equity) *Hint: both sides must be equal ($43,800 for this activity) 3) Create an Income Statement (Service/Revenue - Expenses - Income/Loss) 4) Create a Balance Sheet (A - L + O.E.) 5) Calculate Liquidity Ratios: Current (Current Assets/Current Liability) Acid-Test (Cash + Accounts Receivables + Common Stock/Current Liabilities) 6) Calculate Leverage Ratios: Debt to Owner's Equity Ratio 7) What do the ratios indicate about the company's financial status