Completing the accounting cycle [120-150 min]The trial balance of Wolfe Anvils, Inc., at O...

Completing the accounting cycle [120-150 min]

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.

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b. Prepaid rent still in force at October 31, $2,500.

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c. Supplies used during the month, $1,000.

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d. Depreciation for the month, $300.

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e. Accrued salary expense at October 31, $200.

Requirements

1. Prepare adjusting journal entries.

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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.

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3. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.

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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.

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5. Prepare a post-closing trial balance.

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6. Calculate the current and debt ratios for the company.