1. Prepare Peterson Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet. 2....

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1. Prepare Peterson Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet. 2. Peterson's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Peterson's debt ratio at October 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Peterson could have avoided this difficult situation. Data table Peterson Corporation Adjusted Trial Balance October 31, 2021 Account Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings $ Debit 17,000 19,200 2,300 1,500 36,600 $ Credit 4,100 8,600 1,100 400 2,200 18,100 19,000 2,500 Data table Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense-equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 2,000 1,200 40,000 10,400 3,500 4,000 3,000 7,300 148,000 $ 8,600 1,100 400 2,200 18,100 19,000 2,500 92,000 I 148,000 Data table Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 2,000 1,200 40,000 10,400 3,500 4,000 3,000 7,300 148,000 $ 8,600 1,100 400 2,200 18,100 19,000 2,500 92,000 148,000 1. Prepare Peterson Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet. 2. Peterson's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Peterson's debt ratio at October 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Peterson could have avoided this difficult situation. Data table Peterson Corporation Adjusted Trial Balance October 31, 2021 Account Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings $ Debit 17,000 19,200 2,300 1,500 36,600 $ Credit 4,100 8,600 1,100 400 2,200 18,100 19,000 2,500 Data table Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense-equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 2,000 1,200 40,000 10,400 3,500 4,000 3,000 7,300 148,000 $ 8,600 1,100 400 2,200 18,100 19,000 2,500 92,000 I 148,000 Data table Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 2,000 1,200 40,000 10,400 3,500 4,000 3,000 7,300 148,000 $ 8,600 1,100 400 2,200 18,100 19,000 2,500 92,000 148,000

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1 Peterson Corporation Income Statement For the Year Ended October 31 2021 Revenue Service revenue 9... View the full answer