The trial balance of Speedy G Internet, Inc. at May 31, 2011, follows:
Speedy G Internet, Inc.
Trial balance
May 31, 2011
|
|
Trial balance
|
|
|
Account
|
Debit
|
Credit
|
|
Cash
|
4,200
|
|
|
Account receivable
|
15,000
|
|
|
Prepaid rent
|
2,200
|
|
|
Supplies
|
1,000
|
|
|
Equipment
|
31,500
|
|
|
Accumulated depreciation
|
|
4,000
|
|
Accounts payable
|
|
6,100
|
|
Salary payable
|
|
|
|
Unearned service revenue
|
|
4,000
|
|
Common stock
|
|
7,000
|
|
Retained earnings
|
|
19,600
|
|
Dividends
|
3,600
|
|
|
Service revenue
|
|
19,000
|
|
Salary expense
|
2,200
|
|
|
Rent expense
|
|
|
|
Depreciation expense
|
|
|
|
Supplies expense
|
|
|
|
Total
|
59,700
|
59,700
|
Adjusting data at May 31:
a. Unearned service revenue still unearned, $1,000
b. Prepaid rent sill in force, $1,900
c. Supplies used during the month, $700
d. Depreciation for the month, $500
e. Accrued salary expense, $800
Requirements:
1. Journalize adjusting journal entries.
2. Enter the trial balance on a work sheet and complete the work of Speedy G Internet.
3. Prepare the income statement, statement of retained earnings, and classified balance sheet in report form.
4. Using the work sheet data that you prepared, journalize the closing entries and post the adjusting and closing entries to T-accounts. Use dates and show the ending balance of each account.
5. Prepare a postclosing trial balance.
6. Calculate the current and debt ratios for the company.