Completing the Accounting Cycle 227 Learning Objectives 1.3.6 P4-30A Preparing financial statements including a classified balance sheet in report form, preparing closing entries, and using the current ratio to evaluate a company The adjusted trial balance of Boston Irrigation System at December 31, 2018, follows 2. Ending Capital 580,200 BOSTON IRRIGATION SYSTEM Adjusted Trial Balance December 31, 2018 Balance Account Title Debit Credit Cash $11.800 Accounts Receivable 46.000 Office Supplies 29,500 Prepaid Insurance 6,300 Building 63,000 Accumulated Depreciation-Building $ 25.000 Equipment 20.000 Accumulated Depreciation-Equipment 7,700 Accounts Payable 32,100 Interest Payable 2.200 Salaries Payable 2.600 Unearned Revenue 2,100 Notes Payable (long-term) 22,700 Boston, Capital 33.000 Boston, withdrawals 2,200 Service Revenue 74,500 Insurance Expense 1,100 Salaries Expense 16,400 Supplies Expense 1,100 Interest Expense 2.200 Depreciation Expense-Equipment 2.500 Depreciation Expense-Building Total $ 211900 CHAPTER 4 $ 211,900 Requirements 1. Prepare the company's income statement for the year ended December 31, 2018 2. Prepare the company's statement of owner's equity for the year ended December 31, 2018. Assume that there were no contributions made by the owner during the year. 3. Prepare the company's classified balance sheet in report form at December 31, 2018. 4. Journalize the closing entries for Boston Irrigation System. 5. Compute the company's current ratio at December 31, 2018. At December 31, 2017, the current ratio was 2.3. Did the company's ability to pay current debes improve or deteriorate, or did it remain the same