Questions:

1. Using the adjusted trial balance provided above, prepare a multi-step income statement, statement of retained earnings, and classified balance sheet.
2. Prepare the closing entry for the period based on the above adjusted trial balance.
3. Calculate the current and debt ratio and the working capital for the period.

Reading Booster Ltd. Adjusted Trial Balance July 31, 2023 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Unadjusted } & \multicolumn{2}{|c|}{ Adjustments } & \multicolumn{4}{|c|}{ Adjusted } \\ \hline & & DR & & CR & DR & CR & & DR & & CR \\ \hline Cash & $ & 195,300 & $ & - & $75,870 & & & 271,170 & & \\ \hline Accounts Receivable & $ & 83,600 & $ & - & $5,800 & & $ & 89,400 & & \\ \hline Interest Receivable & $ & - & $ & - & $12,300 & & $ & 12,300 & & \\ \hline Supplies & $ & 72,150 & $ & - & & $36,190 & $ & 35,960 & & \\ \hline Prepaid Rent & $ & - & $ & - & $18,000 & & $ & 18,000 & & \\ \hline Prepaid Insurance & $ & 7,200 & $ & - & & $3,200 & $ & 4,000 & & \\ \hline Equipment & $ & 445,000 & $ & - & & & $ & 445,000 & & \\ \hline A/A - Equipment & & & $ & 125,000 & & $15,000 & & & $ & 140,000 \\ \hline Investments & $ & 195,000 & $ & - & & & $ & 195,000 & & \\ \hline Accounts Payable & $ & - & $ & 6,850 & & $25,220 & & & $ & 32,070 \\ \hline Salaries Payable & $ & - & $ & - & & $13,650 & & & $ & 13,650 \\ \hline Unearned Revenue & $ & - & $ & 56,000 & $48,180 & & & & $ & 7,820 \\ \hline Loan Payable - Equip. & $ & - & $ & 105,000 & $5,000 & & & & $ & 100,000 \\ \hline Share Capital & $ & - & $ & 500 & & & & & $ & 500 \\ \hline Retained Earnings & $ & - & $ & 491,180 & & & & & $ & 491,180 \\ \hline Advertising Sales & $ & - & $ & 324,300 & & $48,180 & & & $ & 372,480 \\ \hline Merchandise Sales & $ & - & $ & 381,650 & & $61,450 & & & $ & 443,100 \\ \hline Interest Income & $ & - & $ & - & & $12,300 & & & $ & 12,300 \\ \hline Cost of Goods Sold & $ & 142,190 & $ & - & $36,190 & & $ & 178,380 & & \\ \hline Amortization & $ & - & $ & - & $15,000 & & $ & 15,000 & & \\ \hline Insurance Expense & $ & - & $ & - & $3,200 & & $ & 3,200 & & \\ \hline Office Expense & $ & 21,190 & $ & - & & & $ & 21,190 & & \\ \hline Rent Expense & $ & 60,000 & $ & - & & $18,000 & $ & 42,000 & & \\ \hline Salary Expense & $ & 236,200 & $ & - & $13,650 & & $ & 249,850 & & \\ \hline Utility Expense & $ & 32,650 & $ & - & & & $ & 32,650 & & \\ \hline Total & $ & 1,490,480 & & L,490,480 & $233,190 & $233,190 & & 1,613,100 & & 4,613,100 \\ \hline \end{tabular}