The adjusted trial balance of Musquem Golf School at April 30, 2014, the end of the company's

Question:

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?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...