E3-37B. (Learning Objectives 3, 5: Adjust the accounts; close the books) The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Lauer Production Company follow: Requirement 1. Journalize the adjusting and closing entries of Lauer Production Company at December 31. There was only one adjustment to Service Revenue. E3-38B. (Learning Objectives 4, 6: Construct the financial statements; analyze and evaluate liquidity and debt-paying ability) Refer to Exercise 3-37B.

Requirements 1. Use the data in the partial worksheet to prepare Lauer Production Companys classified balance sheet at December 31 of the current year. Use the report format. First you must calculate the adjusted balance for several of the balance-sheet accounts. 2. Calculate Lauer Production Companys net working capital, current ratio, and debt ratio at December 31. A year ago, the net working capital was $10,600, the current ratio was 2.40, and the debt ratio was 0.50. Indicate whether the companys ability to pay its debtsboth current and totalimproved or deteriorated during the current year.

E3-37B. (Learning Objectives 3, 5: Adjust the accounts; close the books) The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of LO 3, 5 Lauer Production Company follow Lauer Production Com Adjustments Trial Balance Irial Balance 18,000 1,000 2 Account Cash 4 Prepaid r 5 Equipment 6 Accumulated depreciation -equip 6,100 counts payable 8 Salary payable 9 Unearned service revenue 10 LIncome tax payable 11 Notes payable, long-te 12 Common stock 13 Retained earni 14 Dividends 8,900 15,000 15 Service reve 16 17 Rent ex 18Depreciation expense -equ 19 Income tax e 20 Tot 21 ary e 4,700 950 Requirement 1. Journalize the adjusting and closing entries of Lauer Production Company at December 31 There was only one adjustment to Service Revenue. E3-38B. (Learning Objectives 4, 6: Construct the financial statements; analyze and evaluate liquidity and debt-paying ability) Refer to Exercise 3-37B LO 4, 6 Requirements 1. Use the data in the partial worksheet to prepare Lauer Production Company's classified balance sheet at December 31 of the current year. Use the report format. First you must calculate the adjusted balance for several of the balance-sheet accounts. 2. Calculate Lauer Production Company's net working capital, current ratio, and debt ratio at December 31. A year ago, the net working capital was $10,600, the current ratio was 2.40, and the debt ratio was 0.50. Indicate whether the company's ability to pay its debts both current and total-improved or deteriorated during the current year