Problem 4-4A Preparing closing entries, financial statements, and ratios LO C3, A1, P2 The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. Credi $ Debit 7,589 22,090 9,280 8,580 45,000 188,888 $ 22,500 60,000 61,550 17,500 2,500 3,600 2,900 700 TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 No. Account Title 101 Cash 184 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 301 O. Tybalt, Capital 302 O. Tybalt, Withdrawals 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 7,400 69,000 132,100 103,000 17,500 2,300 2,789 13,200 6,750 26,880 3,780 7,780 13.000 7,480 3,000 4,820 6,000 2,700 4.200 443.709 O. Tybalt invested $7,500 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $124.600). Tybalt Construction is required to make a $7.500 payment on its long-term notes payable during 2018 Required: 10. 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: Prepare the income statement for the calendar year 2017. TYBALT CONSTRUCTION Income Statement For Year Ended December 31, 2017 Revenues Total revenues Expenses | Total expenses Required 1A Required 1B Required 1C Required 2 Required 3 Prepare the statement of owner's equity for the calendar year 2017. TYBALT CONSTRUCTION Statement of Owner's Equity For Year Ended December 31, 2017 O. Tybalt, Capital, Dec. 31, 2016 0. Tybalt, Capital, Dec 31, 2017 Required 1A Required 1B Required 10 Required 2 Required 3 Prepare the dassified balance sheet at December 31, 2017. TYBALT CONSTRUCTION Balance Sheet December 31, 2017 CH Prepare the necessary dosing entries at December 31, 2017 View transaction list Journal entry worksheet 1 2 3 Record the entry to close revenue account(s). Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 S Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 10 Required 2 Required 3 Use the information in the financial statements to compute the following ratios: (a) Return on assets (total assets at December 31, 2016, was $200,000) Numerator: Denominator: Return on total assets ID = Return on total assets (b) Debt ratio Numerator: Denominator: Debt ratio Debt ratio (c) Profit margin ratio (use total revenues as the denominator) Numerator: Denominator Profit margin = Profit margin (d) Current ratio Numerator: Denominator: Current ratio Current ratio