The trial balance of Wolfe Anvils, Inc., at October 31, 2012, and the data for the month-end adjustments follow:

Adjustment data:
a. Unearned service revenue still unearned at October 31, $1,200.
b. Prepaid rent still in force at October 31, $2,500.
c. Supplies used during the month, $1,000.
d. Depreciation for the month, $300.
e. Accrued salary expense at October 31, $200.
Requirements
1. Prepare adjusting journal entries.
2. Enter the trial balance on a worksheet and complete the worksheet through the Adjusted Trial Balance of Wolfe Anvils for the month ended October 31, 2012.
3. Prepare the income statement, the statement of retained earnings, and the 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:

WOLFE ANVILS, INC. Trial Balance October 31, 2012 Balance Credit Account Debit $ 4,300 Cash Accounts receivable 15,000 Prepaid rent Supplies Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue 2,700 1,600 31,200 $ 3,000 6,900 5,400 Common stock 5,000 Retained carnings 21,600 Dividends 3,500 Service revenue 18,900 Salary expense 2,500 Rent expense Depreciation expense Supplies expense $60,800 $60,800 Total