The adjusted trial balance of Musquem Golf School at April 30, 2017, the end of the company's fiscal year, is shown on the next page.

Required

1. Prepare Musquem Golf School's income statement and statement of owner's equity for the year ended April 30, 2017, and the classified balance sheet on that date. Use the account format for the balance sheet.

2. Journalize the closing entries. Include explanations.

3. Compute Musquem Golf School's current ratio and debt ratio at April 30, 2017. One year ago, the current ratio stood at 1.21, and the debt ratio was 0.82. Did Musquem Golf School's ability to pay debts improve or deteriorate during fiscal 2017?

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MUSQUEM GOLF SCHOOL Adjusted Trial Balance April 30, 2017 Cash $3,740 87,480 7,380 4,580 127,860 Accounts receivable Supplies Prepaid insurance Accumulated amortization-equipment $56,860 Building Accumulated amortization-building Land Accounts pavable 148,660 36,520 40,000 41,100 5,560 2,660 7,320 139,800 128,400 Interest payable Wages payable Unearned teaching revenue Notes payable, long-term J. Wilson, capital J. Wilson, withdrawals leachin Amortization ex Amortization ex 56,000 g revenue 197,100 13,800 7,420 66,620 10,740 17,340 9,940 13,760 $615,320 pense equipment Wages expense Insurance expense Interest expense Utilities expense Supplies expense Total $615,320