The adjusted trial balance for Boreal Rock Climbing Centre is as follows::

Instructions
(a) Calculate profit or loss for the year. (It is not necessary to prepare an income statement.)
(b) Prepare a statement of owner's equity. The owner, Lil Massak, invested $3,700 cash in the business during the year. (Note: Th is transaction has been correctly recorded.)
(c) Prepare a classified balance sheet.
(d) Prepare closing entries.
(e) Use T accounts to post the closing entries and calculate the balance in each account. (Ignore the accounts not affected by the closing entries.)
(f) Prepare a post-closing trial balance and compare the balance in the L. Massak, Capital account with the information in the statement of owner's equity.
Taking It Further
What alternatives should be considered when deciding on the presentation of information in the classified balance sheet?

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BOREAL ROCK CLIMBING CENTRE Adjusted Trial Balance January 31, 2014 Debit Credit $9,650 9,375 1,780 20,000 58,500 165,000 Short-term investment Supplies Equity investments (long-term) Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Notes payable ($5,500 must be paid on May 1, 2014) L. Massak, capital L. Massak, drawings Service revenue Depreciation expense Interest expense Insurance expense Salaries expense Supplies expense Utilities expense 27,500 45,250 22,625 1,250 110,000 150,700 52,500 114,300 10,025 4,950 5,625 37,200 7,125 6,750 $433,730 $433,730