The tml balance 'of Coyote Anvils, Inc., at January 31, 2011, and the data for the month-end adjustments follow:

Adjustment data:

a. Unearned service revenue still unearned at January 31, $5,200

b. Prepaid rent still in force at January 31, $1,000

c. Supplies used during the month, $500

d. Depreciation for the month, $300

e. Accrued salary expense at January 31, \($400\)

Requirements

1. Prepare adjusting journal entries.
2. Enter the trial balance on a work sheet and complete the work sheet of Coyote Anvils for the month ended January 31, 2011.
3. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
4. Using the work sheet data that you prepare, post the adjusting and journalize and post the closing entries to T-accounts. Use dates and show the ending balance of each account.
5. Prepare a post closing trial balance.
6. Calculate the current and debt ratio for the company.

Transcribed Image Text:

COYOTE ANVILS, INC. Trial Balance January 31, 2011 Trial Balance Account Debit Credit Cash 5,200 Accounts receivable 15,100 Prepaid rent 2,400 Supplies 1,000 Equipment 31,500 Accumulated depreciation 3,700 Accounts payable Salary payable Unearned service revenue Common stock Retained earnings 6,200 5,600 3,000 27,800 Dividends Service revenue 5,000 17,400 3,500 Salary expense Rent expense Depreciation expense Supplies expense Total 63,700 63,700