The adjusted trial balance for Boreal Rock Climbing Centre is as follows:

Instructions
a. Calculate profit or loss for the year. (Note: It is not necessary to prepare an income statement.)
b. Prepare a statement of owner’s equity. The owner, Lil Massak, invested $3,700 cash in the business
during the year. (Note: This transaction has been correctly recorded.)
c. Prepare a classified balance sheet.
d. Prepare closing entries.
e. Use T accounts to post the closing entries and calculate the balance in each account.
f. Prepare a post-closing trial balance and compare the balance in the L. Massak, Capital account with the information in the statement of owner’s equity.

Taking It Further

What alternatives should be considered when deciding on the presentation of information
in the classified balance sheet?

Transcribed Image Text:

BOREAL ROCK CLIMBING CENTRE Adjusted Trial Balance January 31, 2024 Cash Short-term investment Supplies Equity investments (long-term) Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Notes payable ($5,500 must be paid on May 1, 2024) Debit $ 9,650 9,375 1,780 20,000 58,500 165,000 45,250 Credit $ 27,500 22,625 7,355 1,250 110,000