P4-33B The trial balance of Road Runner Internet at July 31, 2012, follows:

Price: $3.99

P4-33B Completing the accounting cycle [120-150 min]

The trial balance of Road Runner Internet at July 31, 2012, follows:

ROAD RUNNER INTERNET
Trial Balance
31-Jul-12
Account			Debit	Credit
Cash			4200
Accounts receivable			14600
Prepaid rent			2000
Supplies			1600
Equipment			30900
Accumulated depreciation				3,900
Accounts payable				6,700
Salary payable
Unearned service revenue				5,400
Runner, capital				25,800
Runner, drawing			3200
Service revenue				17,700
Salary expense			3000
Rent expense
Depreciation expense
Supplies expense
Total			59500	59500

Adjusting data at July 31, 2012:

a. Unearned service revenue still unearned, $1,200.

b. Prepaid rent still in force at July 31, $1,900.

c. Supplies used during the month, $800.

d. Depreciation for the month, $300.

e. Accrued salary expense at July 31, $500.

Requirements

1. Journalize adjusting journal entries.

2. Enter the trial balance on a worksheet and complete the worksheet for Road

Runner Internet.

3. Prepare the income statement, statement of owner’s equity, 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 the company.