JOHNSON'S NEWSSTANDUnadjusted Trial BalanceDecember 31No.TitleDebitCredit101$ 3,700CashAccounts receivableMerchandise inventoryStore suppliesAccounts payableSalaries payableTod Johnson, capitalTod Johnson, withdrawals1061,8001,200119125600201241402093015,785302375413Sales6,000414Sales returns and allowances1453,200505Purchases506Purchases discounts125507 Transportation-inSalaries expenseRent expense651 Store supplies expenseTotals80622700640250$12,050 $12,050RequiredUse the preceding information and the following additional facts to complete an eight-col-umn work sheet for the company (do not include columns for the adjusted trial balance).a. The ending inventory of store supplies was $450.b. Accrued salaries at the end of the year were $60.c. The ending merchandise inventory was $1,360. Exercise 5-14Calculate the current and acid-test ratios in each of the following cases:Acid-test ratioCase XCase YCase Z(LO 5)Cash$ 800$ 910$1,100Temporary investmentsReceivablesInventoryPrepaid expenses5008004,0009902,0001,0001,200600900Total current assets$4,000$3,500$7,300Current liabilities$2,200$1,100$3,650

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Exercise 5–14 Calculate the current and acid-test ratios in each of the following cases: Acid-test ratio Case X Case Y Case Z (LO 5) Cash $ 800 $ 910 $1,100 Temporary investments Receivables Inventory Prepaid expenses 500 800 4,000 990 2,000 1,000 1,200 $4,000 600 900 Total current assets. $3,500 $7,300 Current liabilities $2,200 $1,100 $3,650 .... ...

Exercise 5–14 Calculate the current and acid-test ratios in each of the following cases: Acid-test ratio Case X Case Y Case Z (LO 5) Cash $ 800 $ 910 $1,100 Temporary investments Receivables Inventory Prepaid expenses 500 800 4,000 990 2,000 1,000 1,200 $4,000 600 900 Total current assets. $3,500 $7,300 Current liabilities $2,200 $1,100 $3,650 .... ...

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterMJ: Mornin's Joe

Section: Chapter Questions

Problem 3IFRS

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he XYZ Company completed the following perpetual inventory transactions: May 1Beginning inventory20 units @ $ 61 eachMay 11purchase 6 units @ $ 76 eachMay 23sale16 units @ $ 89 eachMay 26purchase14 units @ $ 86 eachMay 29sale17 units @ $ 89 each RequirementsCalculate cost of goods sold, Cost of ending inventory, and gross profit using LIFO. During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit? Why? Which method would be more consistent with the matching principle? Why? error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward Question The XYZ Company completed the following perpetual inventory transactions: May 1 Beginning inventory 20 units @ $ 61 each May 11 purchase 6 units @ $ 76 each May 23 sale 16 units @ $ 89 each May 26 purchase 14 units @ $ 86 each May 29 sale 17 units @ $ 89 each Requirements…