Listed bellow are the account names and their balances after adjustments for Brian O’Brion Dance Studio Company for the monthly period at the August 31, 2021.

Rent expense	1,500	O’Brion, drawing	1,100
Salary expense	3,000	Equipment	49,000
Salary payable	500	Accounts payable	4,500
Cash	15,800	O’Brion, capital	36,500
Accumulated depreciation	5,500	Service revenue	18,100
Long-term note payable	4,400	Depreciation expense	300
Utilities expense	600	Supplies	2,000
Prepaid rent	900	Unearned service revenue	5,100
Supplies expense	400

• Prepare the Income statement for Brian O’Brion Dance Studio Company for given period. What conclusions can you make about the company from its Income statement?
• Prepare the statement of owner’s equity.
• Prepare classified Balance Sheet statement in the account form.
• Compute O’Brion’s current ratio and debt ratio at August 31, 2021. One year ago, the current ratio was 1.49 and the debt ratio was 0.29. Indicate whether O’Brion’s ability to pay current and total debts has improved, deteriorated, or remained the same during the current year.

Answer rating: 100% (QA)

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