The unadjusted trial balance of Watson Anvils at December 31, 2018, and the data for the adjustments follow:

Adjustment data:
a. Unearned Revenue still unearned at December 31, $3,600.
b. Prepaid Rent still in force at December 31, $2,000.
c. Office Supplies used, $600.
d. Depreciation, $400.
e. Accrued Salaries Expense at December 31, $180.
Requirements
1. Open the T-accounts using the balances in the unadjusted trial balance.
2. Complete the worksheet for the year ended December 31, 2018 (optional).
3. Prepare the adjusting entries, and post to the accounts.
4. Prepare an adjusted trial balance.
5. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
6. Prepare the closing entries, and post to the accounts.
7. Prepare a post-closing trial balance.
8. Calculate the current ratio for the company.

Transcribed Image Text:

WATSON ANVILS Unadjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit $ 13,560 Cash Accounts Receivable 17,000 Prepaid Rent 2,140 Office Supplies 2,800 Equiment 30,000 $ 11,000 Accumulated Depreciation-Equipment Accounts Payable 7,200 Salaries Payable Unearned Revenue 5,600 Common Stock 12,000 Retained Earnings 17,600 Dividends 4,600 Service Revenue 19,000 Salaries Expense 2,300 Rent Expense Depreciation Expense -Equipment Supplies Expense Total $ 72,400 $ 72,400