The adjusted trial balance of Browne 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 Browne Irrigation System.
5. Compute the company’s current ratio at December 31, 2014. At December 31, 2013, the current ratio was 2.20. Did the company’s ability to pay debts improve or deteriorate, or did it remain thesame?

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BROWNE IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2014 Balance Debit 6,500 43,600 3.300 4,800 23,000 Credit Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Building Accunulated Depreciation-Building Accounts Payable Interest Payable Salaries Payable Uneamed Revenue Notes Payable (0ong-term) Common Stack Retained Earnings Dividends Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Depreciation Expense-Equipment Depreciation Expense-Building Total S 6,900 58,200 24,200 22.300 100 2,800 1.800 4,200 50.000 37,000 5,000 40,000 500 17,700 1,600 100 5,000 20,000 $ 189,300 189,300