The trial balance of Racer Internet, Inc., at March 31, 2012, follows:

Adjusting data at March 31, 2012:
a. Unearned service revenue still unearned, $500.
b. Prepaid rent still in force, $2,000.
c. Supplies used during the month, $800.
d. Depreciation for the month, $400.
e. Accrued salary expense, $600.
Requirements
1. Journalize adjusting journal entries.
2. Enter the trial balance on a worksheet and complete the worksheet of Racer Internet.
3. Prepare the income statement, statement of retained earnings, and classified balance sheet in report form.
4. Using the worksheet data that you prepared, journalize the closing entries, and post the adjusting and closing entries to T-accounts. Use dates and show the ending balance of each account.
5. Prepare a post-closing trial balance.
6. Calculate the current and debt ratios for thecompany.

Transcribed Image Text:

RACER INTERNET, INC. Trial Balance March 31, 2012 Balance Debit Credit Account $ 4,300 Cash Accounts receivable 15,100 Prepaid rent Supplies Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue 2,300 1,000 30,600 $ 3,900 6,400 5,800 Common stock 4,000 Retained earmings 23,000 Dividends 4,100 Service revenue 17,300 Salary expense 3,000 Rent expense Depreciation expense Supplies expense Total $60,400 $60,400