Refer to Exercise.

Requirements
1. Use the data in the partial worksheet to prepare Wallace 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 Wallace Production Company€™s current ratio and debt ratio at December 31. A year ago, the current ratio was 1.45 and the debt ratio was 0.35. Indicate whether the company€™s ability to pay its debts both current and total improved or deteriorated during the currentyear.

Wallace Production Company Unadjusted Trial Balance From the Adjusted Trial Balance Account $13,600 1,100 48,000 Prepaid rent $ 3,600 Accumulated depreciatio. Accounts paybl. Salary payable Income tax payable Notes payable, long-ter Commons Retained earnings Dividends Service revenue Salary expense Rent expense Depreciation expense Income tax expense.... Total 4,400 8,500 10,000 20,800 13,400 1,000 $19,900 4,500 $4,900 1,400 1,700 $69,100 $69,100 $8,600 $19,900