The adjusted trial balance of Bradley Irrigation System at December 31, 2024, follows:

Requirements 

1. Prepare the company’s income statement for the year ended December 31, 2024. 

2. Prepare the company’s statement of owner’s equity for the year ended December 31, 2024. 

3. Prepare the company’s classified balance sheet in report form at December 31, 2024. 

4. Journalize the closing entries for Bradley Irrigation System. 

5. Compute the company’s current ratio at December 31, 2024. At December 31, 2023, the current ratio was 1.7. Did the company’s ability to pay current debts improve or deteriorate, or did it remain the same?

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Account Title Cash BRADLEY IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2024 Accounts Receivable Office Supplies Prepaid Insurance Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Bradley, Capital Bradley, Withdrawals Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Depreciation Expense-Building Depreciation Expense-Equipment Total Balance Debit $ 12,000 51,000 28,300 4,700 57,300 21,000 3,200 1,200 16,200 1,400 2,000 1,200 2,600 $ 202,100 Credit $ 25,300 6,800 40,700 2,000 3,500 1,800 21,000 45,000 56,000 $ 202,100