Refer to Exercise 3-30.

In Exercise 3-30

Journalize the adjusting and closing entries of Kopec Production Company at December 31. There was only one adjustment to Service Revenue.

Required
1. After solving Exercise 3-30, use the data in that exercise to prepare Kopec Production Company's classified balance sheet at December 31 of the current year. Use the report format. First you must compute the adjusted balance for several of the balance-sheet accounts.
2. Compute Kopec Production Company's current ratio and debt ratio at December 31. 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.

Transcribed Image Text:

Kopec Production Company Unadjusted Trial Balance From the Adjusted Trial Balance Account Title 10,200 Prepaid rent Equipment Accumulated depreciation.. Accounts payable Salary payable Unearned service revenue Income tax payable Note pa yable, long-ter Common stock Retained earnings.. Dividends Service revenue Salary expense Rent expense Depreciation expense... Income tax expense Net income 32,100 3,800 4,600 8,400 10,000 8,700 1,300 1,000 12,800 19,500 4,000 1,200 4,900 1,400 300 1,600 8,200 19,500 49,600 49,600