Prepare the income statement and the statement of owner's equity in 2009 for Myra Co.

No. Account Title Debit Credit
101 Cash $7,500
104 short term investment 23,500
126 supplies 8,100
128 Prepaid insurance 8,600
167 Equipment 40,000
168 Accumulated depreciation-Equipment $20,000
173 Building 177,000
174 Accumulated depreciation-Building 59,000
183 Land 68,120
201 Accounts Payable 17,000
203 Interest Payable 3,000
208 Rent Payable 3,500
210 Wages Payable 2,500
213 Prepaid taxes payable 1,300
233 Unearned Professional fees 7,900
251 Long-Term notes payable 64,500
301 S. Myra, Capital 132,600
302 S. Myra, Withdrawals 10,300
401 Professional Fees Earned 104,000
406 Rent earned 18,000
407 Dividends earned 2,500
409 Interest earned 2,300
606 Depreciation expense-Building 12,980
612 Depreciation expense-Equipment 6,000
623 Wages Expense 27,500
633 interest expense 3,800
637 insurance expense 7,700
640 Rent expense 11,300
652 supplies expense 6,100
682 Postage expense 2,800
683 Property taxes expense 3,400
684 Repairs expense 6,900
688 Telephone expense 3,200
690 Utilities expense 3,300
Totals $438,100 $438,100


S. Myra invested $7,500 cash in the business during year 2009 (the December 31, 2008, credit balance of the
S. Myra, Capital account was $125,000). Myra Company is required to make a $6,000 payment as long term notes payable
During 2010.

Required.
1. Prepare the income statement and the statement of owner's equity for the calendar year 2009 and the classified
Balance sheet at December 31, 2009.
2. Prepare the necessary closing entries at December 31, 2009.
3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets as at
December 31, 2008, were $200,000, (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), (d) current ratio.