The adjusted trial balance of Blume Irrigation System at December 31, 2014, follows:

Requirements
1. Prepare the company’s income statement for the year ended December 31, 2014.
2. Prepare the company’s statement of retained earnings for the year ended December 31, 2014.
3. Prepare the company’s classified balance sheet in report form at December 31, 2014.
4. Journalize the closing entries for Blume Irrigation System.
5. Compute the company’s current ratio at December 31, 2014. At December 31, 2013, the current ratio was 1.81. Did the company’s ability to pay debts ­improve or deteriorate, or did it remain thesame?

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BLUME IRRIGATION SYSTEM Adjusted Trlal Balance December 31, 2014 Balance Account Title Deblt Credit $ 11,000 43.100 3.300 4,000 23,000 Accounts Recaivable Office Supplies Prepad hsurance Equipment Accumulated Depredation Building Accumulated Depredatio Accounts Parable Interest Payable Salanes Payable Unearned Revenue Notes Payable (long-tem) Common Stock Retained Eanings Equipment 130 55,800 24,000 24,700 Building 3,900 1,600 2,800 20,000 5,000 2,000 Service Ravenue Insurance Expense Salanies Expense Supplies Expense Interest Expense Depreciation Expense-Equipment Depreciation Expense-Building 74,800 16,300 1,500 2,000 1.800 S 165,100 165.100