The following is the adjusted trial balance for Jones Accounting Services for the year ended December 31, 2021.

Additional Information:

1.   A $5,000 installment on the long-term note payable is due within one year.

2.   Mike Jones invested $15,000 into her business during the year.

Required:

A.  Income Statement for the Year Ended December 31, 2021.

B.  Statement of Owner's Equity for the Year Ended December 31, 2021.

C.  Classified Balance Sheet as of December 31, 2021.

D.  Calculate Working Capital, the Current Ratio, and Acid-Test Ratio at December 31, 2021, and comment on the company's liquidity.

E.  Prepare the Closing Entries on December 31, 2021, in a general journal.

 

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Account Title Accounts payable Accounts Receivable Accumulated Depreciation Building Accumulated Depreciation Equipment Building Cash Jones Accounting Services Adjusted Trial Balance December 31, 2021 Depreciation expense, building Depreciation expense, equipment Insurance expense Interest payable Land Long-term note payable Mike Jones, Capital Mike Jones, Withdrawals Office equipment Office supplies Prepaid Insurance Prepaid Rent Rent expense Salaries expense Salaries payable Service fees earned Totals Dr 9,000 350,000 $98,000 7,000 800 5,200 700,000 200,500 8,000 3,300 9,000 15,000 6,000 89,000 $1,500,800 Cr 6,300 41,000 $4,200 2,000 52,000 1,010,000 14,500 370,800 $1,500,800 Account Title Accounts payable Accounts Receivable Accumulated Depreciation Building Accumulated Depreciation Equipment Building Cash Jones Accounting Services Adjusted Trial Balance December 31, 2021 Depreciation expense, building Depreciation expense, equipment Insurance expense Interest payable Land Long-term note payable Mike Jones, Capital Mike Jones, Withdrawals Office equipment Office supplies Prepaid Insurance Prepaid Rent Rent expense Salaries expense Salaries payable Service fees earned Totals Dr 9,000 350,000 $98,000 7,000 800 5,200 700,000 200,500 8,000 3,300 9,000 15,000 6,000 89,000 $1,500,800 Cr 6,300 41,000 $4,200 2,000 52,000 1,010,000 14,500 370,800 $1,500,800