Question

The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 No. Account Title Debit Credit 101 Cash $ 5,500 104 Short-term investments 24,000 126 Supplies 9,200 128 Prepaid insurance 8,200 167 Equipment 40,000 168 Accumulated depreciation—Equipment $ 20,000 173 Building 165,000 174 Accumulated depreciation—Building 55,000 183 Land 67,000 201 Accounts payable 16,500 203 Interest payable 2,400 208 Rent payable 3,700 210 Wages payable 2,700 213 Property taxes payable 1,500 233 Unearned professional fees 7,700 251 Long-term notes payable 69,500 307 Common stock 5,500 318 Retained earnings 123,800 319 Dividends 12,900 401 Professional fees earned 100,000 406 Rent earned 17,000 407 Dividends earned 2,400 409 Interest earned 2,900 606 Depreciation expense—Building 12,100 612 Depreciation expense—Equipment 6,000 623 Wages expense 27,000 633 Interest expense 3,300 637 Insurance expense 9,700 640 Rent expense 13,100 652 Supplies expense 7,100 682 Postage expense 2,100 683 Property taxes expense 3,800 684 Repairs expense 8,700 688 Telephone expense 2,800 690 Utilities expense 3,100 Totals $ 430,600 $ 430,600 ________________________________________ The December 31, 2016, credit balance of the Retained Earnings account was $123,800. Tybalt Construction is required to make a $8,500 payment on its long-term notes payable during 2018. Required: 1a. Prepare the income statement for the calendar-year 2017. 1b. Prepare the statement of retained earnings for the calendar-year 2017. 1c. Prepare the classified balance sheet at December 31, 2017. 2. Prepare the necessary closing entries at December 31, 2017. 3. Use the information in the financial statements to compute the following ratios:

Answer 1