The trial balance of Leopard Anvils, Inc., 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 retained earnings, 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, INC. Trial Balance January 31, 2012 Balance Debit Credit Account $ 4,400 Cash Accounts receivable 14,800 Prepaid rent Supplies Equipment 2,300 1,200 30,100 $ 4,600 Accumulated depreciation Accounts payable Salary payable Unearned service revenue 7,500 4,900 Common stock 5,000 Retained carmings Dividends 20,700 4,800 17,400 Service revenue Salary expense Rent expense 2,500 Depreciation expense Supplies expense Total $60,100 $60,100