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Connect Fundamental Accounting Principles Chapter 4

Q1. From the dropdown box beside each numbered balance sheet item, select the option of its balance sheet classification. If the item should not appear on the balance sheet, choose the option “No item required” from the selection choices.

Q2. The adjusted trial balance for Tybalt Construction as of December 31, 2019, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2019
No.	Account Title	Debit				Credit
101	Cash	$	6,000
104	Short-term investments		24,500
126	Supplies		9,100
128	Prepaid insurance		8,100
167	Equipment		45,000
168	Accumulated depreciation—Equipment					$	22,500
173	Building		177,000
174	Accumulated depreciation—Building						59,000
183	Land		65,370
201	Accounts payable						17,000
203	Interest payable						2,400
208	Rent payable						3,700
210	Wages payable						2,500
213	Property taxes payable						1,500
233	Unearned professional fees						7,000
244	Current portion of long term note payable						9,000
251	Long-term notes payable						61,000
301	O. Tybalt, Capital						131,900
302	O. Tybalt, Withdrawals		11,000
401	Professional fees earned						104,000
406	Rent earned						16,500
407	Dividends earned						2,200
409	Interest earned						2,100
606	Depreciation expense—Building		12,980
612	Depreciation expense—Equipment		6,750
623	Wages expense		26,000
633	Interest expense		4,400
637	Insurance expense		7,200
640	Rent expense		10,600
652	Supplies expense		6,500
682	Postage expense		3,500
683	Property taxes expense		3,300
684	Repairs expense		8,800
688	Telephone expense		3,200
690	Utilities expense		3,000
	Totals	$	442,300			$	442,300

O. Tybalt invested $6,000 cash in the business during year 2019 (the December 31, 2018, credit balance of the O. Tybalt, Capital account was $125,900).

Required:
1a. Prepare the income statement for the calendar year 2019.

1b. Prepare the statement of owner’s equity for the calendar year 2019.

1c. Prepare the classified balance sheet at December 31, 2019.

2. Prepare the necessary closing entries at December 31, 2019.

3. Use the information in the financial statements to compute the following ratios: