The adjusted trial balance for Sharp Construction as of December 31, 2011, follows.

The adjusted trial balance for Sharp Construction as of December 31, 2011, follows.

SHARP CONSTRUCTION

Adjusted Trial Balance

December 31, 2011

No.Account Title         Debit        Credit

 101  Cash$5,000

 104  Short-term investments22,500

 126  Supplies9,300

 128  Prepaid  insurance7,700

 167  Equipment50,000

 168  Accumulated depreciation—Equipment$25,000

 173  Building165,000

 174  Accumulated depreciation—Building55,000

 183  Land56,700

 201  Accounts payable17,000

 203  Interest payable2,500

 208  Rent payable3,200

 210  Wages payable2,000

 213  Property taxes payable1,200

 233  Unearned professional fees7,700

 251  Long-term notes payable69,000

 301  J. Sharp, Capital127,400

 302  J. Sharp, Withdrawals10,400

 401  Professional fees earned99,000

 406  Rent earned17,000

 407  Dividends earned2,100

 409  Interest earned2,400

 606  Depreciation expense—Building12,100

 612  Depreciation expense—Equipment7,500

 623  Wages expense30,000

 633  Interest expense3,700

 637  Insurance expense9,400

 640  Rent expense      12,800

 652  Supplies expense6,600

 682  Postage expense2,800

 683  Property taxes expense3,900

 684  Repairs expense8,700

 688  Telephone expense2,300

 690  Utilities expense4,100

 Totals$430,500$430,500

J. Sharp invested $5,000 cash in the business during year 2011 (the December 31, 2010, credit balance of the J. Sharp, Capital account was $122,400). Sharp Construction is required to make a $7,500 payment on its long-term notes payable during 2012.

Required:

1.1  Prepare the income statement for the calendar-year 2011. (Input all amounts as positive values. 

1.2  Prepare the statement of owner's equity for the calendar-year 2011. (Amounts to be deducted should be indicated by a minus sign. Omit the "$" sign in your response.)

1.3  Prepare the classified balance sheet at December 31, 2011. 

2.  Prepare the necessary closing entries at December 31, 2011. 

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

 (a)  Return on assets (total assets at December 31, 2010, was $200,000)

 (b)  Debt ratio

 (c)  Profit margin ratio (use total revenues as the denominator)

 (d)  Current ratio