i.

1-4B
Ragequit PC Repair specializes in computer equipment repair following incidents of “gamer rage”. After
losing online games some gamers enter a fit of irrational rage, and break gaming controllers, monitors,
notebook computers, mice, keyboards and televisions*. This rage has been lucrative for the Ragequit PC
Repair. The following account balances relate to the company’s November 30, 2024 year-end financial
statements:

Bank loan payable 4,000 Income tax expense 200

Interest expense 250 Repair revenue 55,000
Dividends 700 Accounts payable 400
Common shares (Dec 1, 2023) 50 Rent expense 8,500
Wages expense 38,000 Accounts receivable 100
Supplies 1,200 Accumulated depreciation – tools and equipment 1,500
Supplies expense 5,000 Cash 900
Tools and Equipment 6,000 Notes payable 800
Retained earnings (Dec 1, 2023) 500 Depreciation expense 1,400

Notes:
• There were no common shares issued or repurchased during the year.
• The current portion of the bank loan payable was $600.

Required:
a.) Prepare an income statement for the year ended November 30, 2024.
b.) Prepare a statement of changes in equity for the year ended November 30, 2024.
c.) Prepare a balance sheet as at November 30, 2024.
d.) Based on your financial statements, compute:
i. The current ratio
ii. The debt ratio iii. The equity ratio

*Like when your opponent (who had unbelievable RNG luck the whole game) top-decks the exact card
he needed to beat you, even though you outplayed him, and are clearly smarter and better than him.
Ridiculous. Hearthstone is for babies.