Problem 4-5A Preparing closing entries, financial statements, and ratios LO C3, A1, P2

The adjusted trial balance for Tybalt Construction as of December 31, 2013, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2013
No.	Account Title	Debit				Credit
101	Cash		$	7,500
104	Short-term investments			24,000
126	Supplies			8,200
128	Prepaid insurance			8,800
167	Equipment			50,000
168	Accumulated depreciationEquipment						$	25,000
173	Building			159,000
174	Accumulated depreciationBuilding							53,000
183	Land			54,640
201	Accounts payable							16,000
203	Interest payable							2,300
208	Rent payable							3,600
210	Wages payable							2,000
213	Property taxes payable							800
233	Unearned professional fees							8,000
251	Long-term notes payable							66,000
301	O. Tybalt, Capital							129,000
302	O. Tybalt, Withdrawals			12,400
401	Professional fees earned							100,000
406	Rent earned							15,000
407	Dividends earned							2,700
409	Interest earned							2,800
606	Depreciation expenseBuilding			11,660
612	Depreciation expenseEquipment			7,500
623	Wages expense			32,000
633	Interest expense			4,600
637	Insurance expense			8,500
640	Rent expense			11,600
652	Supplies expense			5,800
682	Postage expense			2,500
683	Property taxes expense			3,700
684	Repairs expense			6,700
688	Telephone expense			2,800
690	Utilities expense			4,300
	Totals		$	426,200			$	426,200

O. Tybalt invested $7,500 cash in the business during year 2013 (the December 31, 2012, credit balance of the O. Tybalt, Capital account was $121,500). Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2014.

Required:
1.1	Prepare the income statement for the calendar-year 2013.

1.2	Prepare the statement of owner's equity for the calendar-year 2013.

1.3	Prepare the classified balance sheet at December 31, 2013.

2.	Prepare the necessary closing entries at December 31, 2013.
	Closing entries (all dated December 31, 2013):

3.	Use the information in the financial statements to compute the following ratios: