The trial balance of Racer Internet at March 31, 2012, follows:

Adjustment data at March, 31, 2012
a. Unearned service revenue still unearned, $500.
b. Prepaid rent still in force, $2,000.
c. Supplies used during the month, $800.
d. Depreciation for the month, $400.
e. Accrued salary expense, $600.

Requirements
1. Journalize adjusting journal entries.
2. Enter the trial balance on a worksheet and complete the worksheet of Racer Internet.
3. Prepare the income statement, statement of owner's equity, and classified balance sheet in report form.
4. Using the worksheet 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 post-closing trial balance.
6. Calculate the current and debt ratios for thecompany.

Transcribed Image Text:

RACER INTERNET Trial Balance March 31, 2012 Balance Debit Credit Account Cash Accounts receivable Prepaid rent Supplies Equipment Accumulated depreciation Accounts payable Salary payable Uncarned service revenue Racer, capital Racer, drawing Service revenue Salary expense Rent expense Depreciation expense Supplies expense Total 4,300 15,100 2,300 1,000 30,600 3,900 6,400 9,800 23,000 4.100 17,300 3,000 60.400$60,400