The adjusted trial balance of Bertrand Irrigation System at December 31, 2016, follows:

Requirements
1. Prepare the company€™s income statement for the year ended December 31, 2016.
2. Prepare the company€™s statement of retained earnings for the year ended December 31, 2016.
3. Prepare the company€™s classified balance sheet in report form at December 31, 2016.
4. Journalize the closing entries for Bertrand Irrigation System.
5. Compute the company€™s current ratio at December 31, 2016. At December 31, 2015, the current ratio was 2.4. Did the company€™s ability to pay current debts improve or deteriorate, or did it remain the same?

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BERTRAND IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2016 Balance Debit Credit Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Building Accumulated Depreciation- Building Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Retained Earnings Dividends Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Depreciation Expense-Equipment Depreciation Expense Building Total $ 43,700 47,600 3,400 6,100 25,000 $ 6,700 60,000 24,700 41,600 1,200 3,600 1,600 26,200 19,000 13,000 2,400 74,200 1,300 16,600 800 1,200 2,000 1,700 S 211,800 211,800