i.

1-3B Basic Financial Statements

John’s Jungle Gyms is an indoor play area for children. Parents bring their toddlers to play on germ-
covered slides, ladders, ball pits, monkey bars and other pieces of equipment. The following account
balances relate to the company’s October 31, 2024 month end financial statements:

Retained earnings (Oct. 1, 2024) $118,090 Admission revenue $25,000

Cash 14,000 Mortgage 178,000

Accounts payable 5,000 Buildings, net 225,000

Wages payable 2,000 Wages expense 6,000

Repair expense 1,500 Insurance expense 3,000

Accounts receivable 500 Common shares (Oct. 1, 2024) 10

Dividends 200 Equipment, net 75,000

Depreciation expense 2,600 Utilities expense 300

There were no common shares issued or repurchased during the month.

Required:
a.) Prepare an income statement for the month ended October 31, 2024.
b.) Prepare a statement of changes in equity for the month ended October 31, 2024.
c.) Prepare a balance sheet as at October 31, 2024.
d.) Based on your financial statements, compute:
i. The current ratio
ii. The debt ratio iii. The equity ratio