The end-of-month trial balance of Skelly Building Materials at January 31, 2014, is shown below.

a. Supplies consumed during the month, $750. One-half is selling expense, and the other half is general expense.
b. Amortization for the month: building, $2,000; fixtures, $2,400. One-fourth of amortization is selling expense, and three-fourths is general expense.
c. Unearned sales revenue still unearned, $600.
d. Accrued salaries, a general expense, $1,825.
e. Accrued interest expense, $1,640.
f. Inventory on hand, $29,360. Skelly Building Materials uses the perpetual inventory system.
Required
1. Using three-column ledger accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Also open account number 312, Income Summary. Date the balances of the following accounts January 1: Supplies; Building; Accumulated Amortization-Building; Fixtures; Accumulated Amortization-Fixtures; Land; Unearned Sales Revenue; and S. Skelly, Capital. Date the balance of S. Skelly, Withdrawals, January 31.
2. Enter the trial balance on a work sheet, and complete the work sheet for the month ended January 31, 2014. Skelly Building Materials groups all operating expenses under two accounts, Selling Expense and General Expense. Leave two blank lines under Selling Expense and three blank lines under General Expense.
3. Prepare the company's multi-step income statement and statement of owner's equity for the month ended January 31, 2014. Also prepare the balance sheet at that date in report form.
4. Journalize the adjusting and closing entries at January 31, 2014, using page 3 of the general journal.
5. Post the adjusting and closing entries, using dates and posting references.
6. Compute Skelly Building Materials' current ratio and debt ratio at January 31, 2014, and compare these values with the industry averages of 1.9 for the current ratio and 0.57 for the debt ratio. Compute the gross margin percentage and the rate of inventory turnover for the month (the inventory balance at the end of December 2013 was $33,250) and compare these ratio values with the industry averages of 0.36 for the gross margin ratio and 1.7 times for inventory turnover. Does Skelly Building Materials appear to be stronger or weaker than the average company in the building materials industry?

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SKELLY BUILDING MATERIALS Trial Balance January 31, 2014 Balance Debit Account Number Account Credit $ 8,215 9,545 30,200 110 Cash 120 Accounts receivable 130 Inventory Supplies Building Accumulated amortization-building 1,350 140 150 64,085 $ 18,000 151 160 Fixtures 22,800 161 Accumulated amortization-fixtures 2,900 170 Land 30,000 200 Accounts payable Salary payable Interest payable 11,650 205 210 240 Unearned sales revenue 3,280 250 Note payable, long-term S. Skelly, capital S. Skelly, withdrawals 41,000 300 72,490 4,600 311 400 Sales revenue 93,985 2,400 2,820 51,500 402 Sales discounts 430 Sales returns and allowances Cost of goods sold Selling expense General expense Interest expense 500 600 10,760 5,030 700 705 $243,305 Total $243,305