Mark Hanson, the accountant for Glenn Graphics, had prepared the work sheet shown on the next page on a computer spreadsheet but has lost much of the data. The only particular item the accountant can recall is that an adjustment was made to correct an error made where $900 of supplies, purchased on credit, had been incorrectly recorded as $9,000 of equipment.

Required
1. Complete the work sheet by filling in the missing data.
2. Journalize the closing entries that would be required on December 31, 2014. Include explanations.
3. Prepare the company's classified balance sheet as of December 31, 2014, in report format.
4. Compute Glenn Graphics' current ratio and debt ratio for December 31, 2014. On December 31, 2013, the current ratio was 2.25 and the debt ratio was 0.41. Comment on the changes in the ratios.
5. If the company were reporting under IFRS, how might the balance sheet presentation differ from the one prepared in Requirement 3?

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GLENN GRAPHICS Work Sheet For the Year Ended December 31, 2014 Adjusted Trial Trial Balance Adjustments Balance Income Statement Balance Sheet Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Cash 18,000 18,000 Accounts receivable 34,050 34,200 Supplies 2,100 (b) 1,050 Prepaid insurance 2,400 2,100 Equipment 39,000 30,000 Accum. amort.- 4,500 6,750 equip. Building 129,000 129,000 Accum. amort.- (e) 3,450 36,900 bldg. 36,000 Land 36,000 Accounts payable 15,900 24,000 1,350 Wages payable (f) 600 Interest payable 3,000 Unearned revenues 4,050 (g) 600 Mortgage payable W. Glenn, capital W. Glenn, 60,000 60,000 118,500 118,500 37,000 37,000 37,000 withdrawals Graphics fees earned Wages expense 147,650 148,400 85,650 85,050 Insurance expense 3,300 Interest expense 13,000 Utilities expense 1,050 1,050 Supplies expense Amort. exp.-equip. Amort. exp.-bldg. 1,050 (b) 1,050 (d) 2,250 2,250 Totals 399,950 399,950