The trial balance of Leopard Anvils at January 31, 2012

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P4-32B Completing the accounting cycle [120-150 min]

The trial balance of Leopard Anvils at January 31, 2012, and the data for the month end adjustments follow:

LEOPARD ANVILS
Trial Balance
31-Jan-12

Cash $4,400
Accounts receivable 14,800
Prepaid rent 2,300
Supplies 1,200
Equipment 30,100
Accumulated depreciation $4,600
Accounts payable 7,500
Salary payable
Unearned service revenue 4,900
Leopard, capital 4800 25,700
Leopard, drawing
Service revenue 2500 17,400
Salary expense
Rent expense
Depreciation expense
Supplies expense
Total $60,100 60,100

Adjustment data:

Unearned service revenue still unearned at January 31, $400.
Prepaid rent still in force at January 31, $1,800.
Supplies used during the month, $1,100.
Depreciation for the month, $400.
Accrued salary expense at January 31, $500.

Requirements

1. Prepare adjusting journal entries.

2. Enter the trial balance on a worksheet and complete the worksheet through the Adjusted Trial Balance of Leopard Anvils for the month ended January 31, 2012.

3. Prepare the income statement, the statement of owner’s equity, and the classified balance sheet in report form.

4. Using the worksheet data that you prepared, journalize 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 the company