In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and acurrent ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account and (2) purchased a delivery truck for $10,000, paying $1,000 cashand signing a two-year promissory note for the balance.Required:Compute the updated current ratio, rounded to two decimal places, after each transaction.
Q: On December 1, 2022, Swifty Company had the account balances shown below. Debit Credit…
A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…
Q: On December 1, 2022, Sheridan Distributing Company had the following account balances. Debit…
A: Journal entry: It is a first step in recording the transactions which consist of debit and credit…
Q: On December 1, 2022, Sheridan Distributing Company had the following account balances.…
A: 1. Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the…
Q: Prepare an adjusted trial balance. PHAROAH DISTRIBUTING COMPANY
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: The trial balance of Scan House, Inc. included the following selected accounts as of December 31,…
A: Multi-Step Income Statement: Multi-step income statements are one of the two-income statement…
Q: Enter the December 1 balances in the ledger T-accounts and post the December transactions.
A: T accounts or ledger accounts refers to the accounts which were prepared using the journal entries…
Q: Enter the December 1 balances in the ledger T-accounts and post the December transactions.
A: T-Accounts are said to be ledger accounts that are prepared by using recordings from journal book.…
Q: The following transactions occurred during March 2018 for the Wainwright Corporation. The company…
A: 1. Analyze each transaction by indicating the cash effect and classify each as financing,…
Q: On December 1, 2022, Sheridan Distributing Company had the following account balances. Debit…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: In each case, identify whether the transaction is an example of financing, investing, or operating…
A: There are three types of cash flow activities. They are : 1. Cash flows from operating activities 2.…
Q: The net income reported on the income statement for the current year was $73,600. Depreciation…
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…
Q: In its most recent annual report, Appalachian Beverages reported current assets of $51,300 and a…
A: Current Ratio= Current Assets/Current Liabilities
Q: For the year just completed, Hanna Company had net income of $43,500. Balances in the company's…
A: Cash flow from operating activities part of cash flow statement. it can be paid using the direct and…
Q: Good Call is a delivery business that provides its services in cash and on credit. It has a large…
A: The income statement is one of the important financial statements of the business, which tells about…
Q: n December 1, 2022, Pharoah Distributing Company had the following account balances. Debit…
A: In a perpetual inventory system, the inventory records are maintained updated and the inventory…
Q: In its most recent annual report, Appalachian Beverages reported current assets of $49,300 and a…
A: Current Ratio also known as working capital ratio explains the relationship between current assets…
Q: The accountant of Whispering Shoe Co. has compiled the following information from the company’s…
A: Income statement means the statement which show the cost of goods sold and selling price and give…
Q: The following information applies to the questions displayed below.] Simon Company’s year-end…
A: Solution: Days sales uncollected is computed as = Average accounts receivables * Nos of days in year…
Q: The Income Statement and additional data of Crawford Properties, Inc., follows: CRAWFORD PROPERTIES…
A: A cash flow statement (CFS) is the statement showing the outgoing payments and incoming receipts of…
Q: The accountant for Polo's Pet Shop prepared the following list of account balances from the entity's…
A: Statement of Owners Equity is an essential part of financial statements. It indicates the investment…
Q: Khan's had the following accounts at year end: Cash-250,000, Accounts Payable-70,000, Accounts…
A: Introduction: Current Assets: Assets which can be easily converted in to cash with in a year period…
Q: The net income reported on the income statement for the current year was $149,900. Depreciation…
A: CFS is the statement prepared for the purpose of reporting all the cash inflows and outflows during…
Q: The accountant for Polo's Pet Shop prepared the following list of account balances from the entity's…
A: Owners capital increases with income earned and contribution during the year and decreases with…
Q: The net income reported on the income statement for the current year was $116,600. Depreciation…
A: Lets understanding the basics. Cashflow are divided into three type of activities which are, (1)…
Q: Income tax expense has not yet been recorded. The income tax rate is 40%. Determine the following:…
A: Operating profit refers to the amount of profit earned by a business through its operations.…
Q: Jaguar Plastics Company has been operating for three years. At December 31 of last year, the…
A: You have posted multiple part question, so as per our policy only the first three sub-parts are…
Q: At the end of the current year, the entity reported the following financial data: Total Assets…
A: Ratio analysis means that various ratio can be calculated with the given date of the company and…
Q: My business has a Stores and Distribution expense of $1,542,425, 80% was paid in Cash ($1,233,940),…
A: Accrued Liability: An accrued liability is an expense that a business is yet to pay even after it…
Q: The following are the transactions of Sheldon, Inc., for the month of January. Borrowed $12000 from…
A: A balance sheet comprises: equity, liabilities and assets. Each transaction has an effect on any one…
Q: On December 1, 2022, Pharoah Distributing Company had the following account balances. Debit…
A: Journal entries:
Q: b. Lower efficiency because its gross profit margin is lower than that of the industry average. c.…
A: The question is related to Ratio Analysis. The details are given Required 1. Gross Profit Ratio,…
Q: At year-end, Schultz, Inc. has cash of $11,600, current accounts receivable of $48,900, merchandise…
A: Quick assets = Cash + Accounts receivable = $11,600 + $48,900 = $60,500
Q: The following data relates to the assets due within one year for Simons Co. Cash $56,000 Accounts…
A: Simons Co. Balance Sheet December 31 Assets Current Assets: Cash $56,000…
Q: During the first month of operations, the following transactions occur for Orison Supply Store. The…
A: The transaction, which is measurable in monetary terms, is an economic event with a third party…
Q: On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit…
A: Journal entry is a record of financial transaction in the books of accounts maintained by an…
Q: On December 1, 2022, Sheridan Distributing Company had the following account balances. Debit…
A: A financial statement is one prepared by the companies in a structured manner to depict the…
Q: Post into ledger accounts
A: T accounts or ledger accounts refers to the accounts which were prepared using the journal entries…
Q: On the basis of the following data related to assets due within one year for simmons Co. prepared…
A: Current assets are the resources owned or held by an entity for a period of one year or even lesser.
Q: The net income reported on the income statement for the current year was $73,600. Depreciation…
A:
Q: On December 1, 2022, Sheridan Distributing Company had the following account balances.…
A: 1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: For the year just completed, Hanna Company had net income of $63,000. Balances in the company’s…
A: Cash flow from operating activities :— It is one of the section of cash flow statement which shows…
Q: During the year, Hepworth Company earned a net income of $85,025. Beginning and ending balances for…
A: Cash flow statement is prepared to ascertain the source and usage of cash in the business. It has…
Q: the business is a trading business. for the period, it purchased goods for sale valued at 120,000.…
A: Sales: It refers to an activity in which goods or services are sold to the customers.
Q: Required information [The following information applies to the questions displayed below.] Jaguar…
A: Balance Sheet :— It is one of the financial statement that shows list if assets, liabilities and…
Q: Simpson Auto Body Repair purchased $19,460 of Machinery. The company paid $3,959 in cash at the time…
A: a)Answer: Increase total assets by a net amount of $15,501 and increase liabilities by $15,501.…
Q: For the just completed year, Hanna Company had net income of $66,000. Balances in the company’s…
A: Indirect method shows the net income and Adjustment to net income to reconcile operating cash flow.…
Q: On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit…
A: Journal entries:
In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a
and signing a two-year promissory note for the balance.
Required:
Compute the updated current ratio, rounded to two decimal places, after each transaction.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.
- The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. You have been asked to prepare a statement of cash flows for Prime Sports Gear for 2013. Review the worksheet called CASHFLOW that has been provided to assist you in preparing the statement. The worksheet has been designed so that as you make entries in columns D and F, column G will be automatically updated. For example, FORMULA1 should be entered as =B17+D17F17. Columns C and E are to be used to enter letter references for each of the debit and credit entries on the worksheet.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
- The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066In its most recent annual report, Appalachian Beverages reported current assets of $51,300 and a current ratio of 1.90. Assume that the following transactions were completed: (1) purchased merchandise for $5,700 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance. Required:Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.)During its first year of operations, Yellow Bell Co. provided services to customers for the value of $76,000. At the end of the year, $16,000 of the $76,000 remained in Accounts Receivable. Yellow Bell Co. also incurred expenses of $47,000, of which, $7,000 is remained in Accounts Payable at year end. How much was Yellow Bell's net income assuming they used the accrual method of accounting?
