The calendar year-end adjusted trial balance for Acosta Co follows ACOSTA CO

Question

The calendar year-end adjusted trial balance for Acosta Co. follows:

ACOSTA CO. Adjusted Trial Balance December 31
Cash	$ 100,000
Accounts receivable	7,000
Prepaid rent	15,000
Prepaid Insurance	9,000
Office supplies	3,300
Office equipment	8,000
Accumulated depreciation Equipment		$ 3,200
Building	350,000
Accumulated depreciation Building		42,000
Land	700,000
Accounts payable		5,800
Salaries payable		14,500
Interest payable		2,500
Long-term note payable		52,000
Common stock		50,000
Retained earnings		960,000
Dividends	200,500
Service fees earned		370,800
Salaries expense	90,000
Insurance expense	5,200
Rent expense	5,000
Depreciation expense Equipment	800
Depreciation expense Building	7,000
Totals	$1,500,800	$1,500,800

Required:
a. Prepare a classified year-end balance sheet. (Note: A $7,000 installment on the long-term note payable is due within one year.)
b. Calculate the current ratio.