E3-42. (Learning Objectives 3, 4, 5, 6: Adjust the accounts; construct the financial statements; close the books; analyre and evaluate liquidity and debt-paying ability) Refer to Exersise 2.39 of Chapter 2. Start from the trial balance and the posted T-accounts that Olivia Matthews, Certified Public Accountant, Professional Corporation (P.C.), prepared for her accounting practice at May 18, 2021. A professional corporation is not subject to income tax. Later in May, the business completed these transactions: Requirements 1. Journalize the transactions of May 21 through 31. 2. Post the May 21 to 31 transactions to the T-accounts, keying all items by date. 3. Prepare an Excel spreadsheet showing the unadjusted trial balance at May 31. Set up the worksheet to prepare the adjusted trial balance as seen in Exhibit 3-9. 4. At May 31, Matthews gathers the following information for the adjusting entries: 1. Accrued service revenuc, $2,000. 2. Earned $800 of the service revenue collected in advance on May 21. 3. Supplies on hand, $300. 4. Depreciation expense equipment, $30; furmiture, $100. 5. Accrued expense for assistant's salary, $900. Refer to the Excel spreadsheet you prepared in Requirement 3. Make these adjustments in the adjustments columns and complete the adjusted trial balance at May 31. 5. Journalize and post the adjusting entries. 6. Prepare the income statement and statement of retained carnings of Olivia Matthews, Certified Public Accountant, P.C., for the month ended May 31 and the balance sheet at that date. 7. Journalize and post the closing entries at May 31. 8. Calculate the net working capital, current ratio, and the debt ratio of Olivia Matthews, Certified Public Accountant, P.C., and determine if they indicate a strong or weak financial position