The trial balance of Leopard Anvils at January 31, 2012, and the data for the month-end adjustments follow:

Adjustment data:
a. Unearned service revenue still unearned at January 31, $400.
b. Prepaid rent still in force at January 31, $1,800.
c. Supplies used during the month, $1,100.
d. Depreciation for the month, $400.
e. Accrued salary expense at January 31, $500.

Requirements
1. Prepare adjusting journal entries.
2. Enter the trial balance on a worksheet and complete the worksheet through the
Adjusted Trial Balance of Leopard Anvils for the month ended January 31, 2012.
3. Prepare the income statement, the statement of owner€™s equity, and the classified balance sheet in report form.
4. Using the worksheet data that you prepared, journalize and post the adjusting and closing entries to T-accounts. Use dates and show the ending balance of each account.
5. Prepare a post-closing trial balance.
6. Calculate the current and debt ratios for thecompany.

Transcribed Image Text:

LEOPARD ANVILS Trial Balance January 31, 2012 Balance Debit Credit Account Cash Accounts receivable Prepaid rent Supplies Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue Leopard, capital Leopard, drawing Service revenue Salary expense Rent expense Depreciation expense Supplies expense Total S 4,400 14,800 2,300 1,200 30,100 $ 4,600 7,500 4,900 25,700 4,800 17,400 2,500 60,100 $60.100