Income statement and statement of owner equity

Question

Problem: S Myra invested $7,500 cash in business during 2009 (the Dec 31, 2008 credit balance of the S Myra Capital Account was $125,100). Myra Co is required to mail a $6,000 payment on its long term notes payable during 2010.

Required:

1) Prepare the income statement and the statement of owner's equity for the calendar year 2009 and the classified balance sheet at Dec 31, 2009.

2) Prepare the necessary closing entries at Dec 31, 2009.

3) Use the information in the financial statements to calculate these ratio's: (a) return on assets (total assets at Dec 31, 2008, were $200,000, (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio.

Check: (1) Total Assets (12/31/2009), $253, 820; Net income $31,820

Adjusted Trial Balance
December 31, 2009
No.	Account Title	Debit	Credit
101	Cash	$7,500
104	Short0term investments	23,500
126	Supplies	8,100
128	Prepaid Insurance	8,600
167	Equipment	40,000
168	Accumulated depreciation - Equipment		$20,000
173	Building	177,000
174	Accumulated depreciation - Building		59,000
183	Land	68,120
201	Accounts Payable		17,000
203	Interest Payable		3,000
208	Rent Payable		3,500
210	Wages Payable		2,500
213	Property Taxes Payables		1,300
233	Unearned professional fees		7,900
251	Long-term notes payable		64,500
301	S. Myra, Capital		132,600
302	S. Myra, Withdrawals	10,300
401	Professional fees earned		104,000
406	Rent earned		18,000
407	Dividens earned		2,500
409	Interest earned		2,300
606	Depreciation expense - Building	12,980
612	Depreciation expense - Equipment	6,000
623	Wages Expense	27,500
633	Interest expense	3,800
637	Insurance exprense	7,700
640	Rent expense	11,300
652	Supplies expense	6,100
682	Postage expense	2,800
683	Property taxes expense	3,400
684	Repairs expense	6,900
688	Telephone expense	3,200
690	Utilities expense	3,300
	Totals	$438,100	$438,100