S. Myra invested $7,500 cash in the business during year 2009 (the December 31, 2008, credit balance of the 

S. Myra, Capital account was $125,000). Myra Company is required to make a $6,000 payment as long term notes payable

during 2010.

No. Account Title Debit Credit

101 Cash $7,500 

104 short term investment 23,500

126 supplies 8,100

128 Prepaid insurance 8,600

167 Equipment 40,000

168 Accumulated depreciation-Equipment $20,000 

173 Building 177,000

174 Accumulated depreciation-Building 59,000

183 Land 68,120

201 Accounts Payable 17,000

203 Interest Payable 3,000

208 Rent Payable 3,500

210 Wages Payable 2,500

213 Prepaid taxes payable 1,300

233 Unearned Professional fees 7,900

251 Long-Term notes payable 64,500

301 S. Myra, Capital 132,600

302 S. Myra, Withdrawals 10,300

401 Professional Fees Earned 104,000

406 Rent earned 18,000

407 Dividends earned 2,500

409 Interest earned 2,300

606 Depreciation expense-Building 12,980

612 Depreciation expense-Equipment 6,000

623 Wages Expense 27,500

633 interest expense 3,800

637 insurance expense 7,700

640 Rent expense 11,300

652 supplies expense 6,100

682 Postage expense 2,800

683 Property taxes expense 3,400

684 Repairs expense 6,900

688 Telephone expense 3,200

690 Utilities expense 3,300

Totals $438,100 $438,100 

Required.

1. Prepare the income statement and the statement of owner's equity for the calendar year 2009 and the classified

balance sheet at December 31, 2009.

2. Prepare teh necessary closing entries at December 31, 2009.

3. Use the information in the financial statements to calculate these ratios:

(a) Return on assets (total assets as at December 31, 2008, were $200,000,

(b) Debt ratio,

(c) Profit margin ratio (use total revenues as the denominator),

(d) Current ratio.