Question: The adjusted trial balance for Tybalt Construction
The adjusted trial balance for Tybalt Construction as of December 31, 2015, follows. 
O. Tybalt invested $5,000 cash in the business during year 2015 (the December 31, 2014, credit balance of the O. Tybalt, Capital account was $121,400). Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2016. Required 1. Prepare the income statement and the statement of owner’s equity for the calendar year 2015 and the classified balance sheet at December 31, 2015. 2. Prepare the necessary closing entries at December 31, 2015. 3. Use the information in the financial statements to compute these ratios: (a) return on assets (total assets at December 31, 2014, was $200,000), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio. Round ratios to three decimals for parts a and c, and to two decimals for parts b and d.
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TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2015 No. Account Title Debit Credit 101 $ 5,000 Cash 104 Short-term investments 23,000 8,100 7,000 40,000 126 Supplies . Prepaid insurance Equipment Accumulated depreciation-Equipment Building . Accumulated depreciation-Building 128 167 168 $ 20,000 173 150,000 174 50,000 183 Land 55,000 201 16,500 2,500 3,500 2,500 Accounts payable Interest payable Rent payable Wages payable Property taxes payable Unearned professional fees Long-term notes payable O. Tybalt, Capital O. Tybalt, Withdrawals Professional fees eamed. 203 208 210 213 900 233 7,500 67,000 126,400 251 301 302 13,000 401 97,000 14,000 2,000 2,100 406 Rent earned 407 Dividends earned 409 Interest earned 11,000 6,000 32,000 5,100 10,000 13,400 7,400 4,200 5,000 8,900 3,200 606 depreciation expense-Building depreciation expense-Equipment. Wages expense Interest expense.. Insurance expense Rent expense 612 623 633 637 640 Supplies expense Postage expense Property taxes expense Repairs expense Telephone expense Utilities expense 652 682 683 684 688 690 4,600 $411,900 Totals $411,900
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