The adjusted trial balance of Brian O'Brion Dance Studio Company follows:

Requirements

1. Prepare the classified balance sheet of Brian O'Brion Dance Studio Company at August 31, 2014. Use the report form. You must compute the ending balance of Retained Earnings.

2. Compute O'Brion's current ratio at August 31, 2014. One year ago, the current ratio was 1.49. Indicate whether O'Brion's ability to pay current debts has improved, deteriorated, or remained the same.

Transcribed Image Text:

BRIAN O BRION DANCE STUDIO COMPANY Trlal Balance August 31, 2014 Balance Account Title Cash Office Supplies Prepaid Rent Equipment Deblt 15,800 2,000 900 49,000 Credit Accumulated Depredation-Equipment 5,500 4,500 500 5,100 4,400 16,500 20,000 Accounts Payable Salaries Payable Unearned Revenue Notes Payable (ong-term) Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Depreoation Expense Equipment Supplies Expense Utblities Expense Total 1,100 18,100 3,000 1,500 400 600 74,600 $74,600