Refer to Exercise 4–9.

The adjusted trial balance from the March work sheet of O'Neill Systems follows:

Required
1. After solving Exercise 4-9, use the data in that exercise to prepare O'Neill Systems' classified balance sheet at March 31, 2014. Use the report format. You must compute the ending balance of P. O'Neill, Capital.
2. Compute O'Neill Systems' current ratio and debt ratio at March 31, 2014. One year ago, the current ratio was 1.20 and the debt ratio was 0.30. Indicate whether O'Neill Systems' ability to pay its debts has improved or deteriorated during the current year.

Transcribed Image Text:

$ 27,600 Cash Supplies Prepaid rent Office equipment Accumulated amortization-office 7,500 3,600 170,900 $ 26,050 equipment Accounts payable Salaries payable 29,300 3,250 17,600 Unearned service revenue P. O'Neill, capital P. O'Neill, withdrawals 153,300 15,000 63,000 Service revenue Salaries expense Rent expense Amortization expense 45,200 15,650 1,200 office equipment Supplies expense Utilities expense 2,650 3,200 $292,500 $292,500