The adjusted trial balance of Boston Irrigation System at December 31, 2018, follows:

Requirements
1. Prepare the company's income statement for the year ended December 31, 2018.
2. Prepare the company's statement of retained earnings for the year ended December 31, 2018.
3. Prepare the company's classified balance sheet in report form at December 31, 2018.
4. Journalize the closing entries for Boston Irrigation System.
5. Compute the company's current ratio at December 31, 2018. At December 31, 2017, the current ratio was 2.3. Did the company's ability to pay current debts improve or deteriorate, or did it remain the same?

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BOSTON IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2018 Balance Debit Credit Account Title $ 11,800 Cash Accounts Receivable 46,000 Office Supplies 29,500 Prepaid Insurance 6,300 Building 63,000 Accumulated Depreciation-Building $ 25,000 Equipment 28,000 Accumulated Depreciation-Equipment 7,700 Accounts Payable 32,100 Interest Payable 2,200 Salaries Payable 2,600 Unearned Revenue 2,100 Notes Payable (long-term) 32,700 Common Stock 12,000 Retained Earnings 21,000 Dividends 2,200 Service Revenue 74,500 1,100 Insurance Expense Salaries Expense 16,400 Supplies Expense 1,100 Interest Expense 2,200 Depreciation Expense Equipment Depreciation Expense Building 2,500 1,800 $ 211,900 $ 211,900 Total