Refer to exercise E3-31.

Requirements
1. After solving exercise E3-30, use the data in that exercise to prepare Yosaf Portraits Ltd.'s classified balance sheet at December 31, 2020. Use the report format. First you must compute the adjusted balance for several balance sheet accounts.
2. Compute Yosaf Portraits Ltd.'s current ratio and debt ratio at December 315 2020. A year ago, the current ratio was 1.55 and the debt ratio was 0.45 . Indicate whether the company's ability to pay its debts-both current and total-improved or deteriorated during the current year.

Exercise E3-30

Prepare the required closing entries for the following selected accounts from the records of SouthWest Transport Inc. at December 31, 2020 (amounts in thousands):

Exercise E3-31

The unadjusted trial balance and the income statement amounts from the December 31, 2020, adjusted trial balance of Yosaf Portraits Ltd. are given below.

Transcribed Image Text:

Cost of services sold. Accumulated depreciation... $11,600 Service revenue $23,600 17,800 Depreciation expense 4,100 Selling, general, and Other revenue 600 administrative expense... 6,900 Income tax expense. 400 Retained earnings, Dividends......... 400 December 31, 2019. 1,900 Income tax payable. 300