Refer to exercise E3-31.

Information from E3-31

The unadjusted trial balance and the income statement amounts from the December 31, 2017, adjusted trial balance of Yosaf Portraits Ltd. are given below.

Requirements
1. After solving E3-30, use the data in that exercise to prepare Yosaf Portraits Ltd.'s classified balance sheet at December 31, 2017. 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 31, 2017. 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:

Yosaf Portraits Ltd Trial Balance December 31, 2017 Unadjusted Trial Balance From the Adjusted Trial Balance 2 Account Title 3 Cash 4 10,200 1,100 32,100 aid rent 5 Equipment 6 Accumulated de 7 Accounts payable 8 Salary payable 3,800 4,600 ion service revenue 8,400 10 Income tax payable 11 Note le, long term 10,000 8,700 1,300 12 Share capital 13 Retained earnin 14 Dividends 15Service revenue 16 Salary e 17 Rent expense 18 Depreciation expense 19 Income tax expense 20 21 Net income 1,000 12,800 19,500 4,900 1,400 300 1,600 8,200 11,300 19,500 4,000 1,200 49.60049,600 19,500 19,500 23