The adjusted trial balance of Musquem Golf School at April 30, 2014, 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, 2014, 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, 2014. 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 2014?

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MUSQUEM GOLF SCHOOL Adjusted Trial Balance April 30, 2014 $ 3,740 Cash Accounts receivable 87,480 7,380 Supplies Prepaid insurance 4,580 127,860 Equipment $ 56,860 Accumulated amortization-equipment 148,660 Building Accumulated amortization-building 36,520 Land 40,000 Accounts payable 41,100 Interest payable 5,560 Wages payable 2,660 7,320 Unearned teaching revenue 139,800 Notes payable, long-term J. Wilson, capital J. Wilson, withdrawals 128,400 56,000 Teaching revenue 197,100 Amortization expense equipment Amortization expense building 13,800 7,420 Wages expense 66,620 Insurance expense 10,740 Interest expense 17,340 Utilities expense 9,940 Supplies expense 13,760 Total $615,320 $615,320