The trial balance of Speedy G Internet, Inc. at May 31, 2011, follows:
Speedy G Internet, Inc.
Trial balance
May 31, 2011
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
Required
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.