Mark Hanson, the accountant for Glenn Graphics, had prepared the worksheet shown on the next page on a computer spreadsheet but has lost much of the data. The only particular item the accountant can recall is that an adjustment was made to correct an error where $900 of supplies, purchased on credit, had been incorrectly recorded as $9,000 of equipment.

Required

1. Complete the worksheet by filling in the missing data.

2. Journalize the closing entries that would be required on December 31, 2023. Include explanations.

3. Prepare the company’s classified balance sheet as of December 31, 2023, in report format.

4. Compute Glenn Graphics’ current ratio and debt ratio for December 31, 2023. On December 31, 2022, the current ratio was 2.25 and the debt ratio was 0.41. Comment on the changes in the ratios.

5. If the company were reporting under IFRS, how might the balance sheet presentation differ from the one prepared in Requirement 3?

Transcribed Image Text:

1 2 3 45 A Account Title 6 Cash 7 Accounts receivable 8 Supplies 9 Prepaid insurance 10 Equipment 11 Accum. amort-equip. 12 Building 13 Accum. amort-bldg. 14 Land 15 Accounts payable 16 Salaries payable 17 Interest payable 18 Unearned revenues 19 Mortgage payable 20 W. Glenn, capital 21 W. Glenn, withdrawals 22 Graphics fees earned 23 Salaries expense 24 Insurance expense 25 Interest expense 26 Utilities expense 27 Supplies expense 28 Amort. exp.-equip. 29 Amort. exp. bldg. 30 Totals B Unadjusted Trial Balance Dr Cr 18,000 34,050 2,100 2,400 39,000 129,000 36,000 37,000 с 85,050 3,300 13,000 1,050 4,500 36,900 Worksheet For the Year Ended December 31, 2023 60,000 118,500 D 147,650 E F G GLENN GRAPHICS 399,950 399,950 24,000 1,350 3,000 4,050 (g) 600 Adjustments Dr (b) 1,050 (d) 2,250 Cr (b) 1,050 (e) 3,450 H (f) 600 Adjusted Trial Balance Dr 18,000 34,200 2,100 30,000 129,000 36,000 37,000 85,650 I 1,050 1,050 2,250 Cr 6,750 15,900 60,000 118,500 148,400 J K Income Statement Dr Cr L Balance Sheet Dr M 37,000 Cr