Question

The adjusted trial balance of Wong Consulting Services is as follows:

WONG CONSULTING SERVICES Adjusted Trial Balance December 31, 2021
		Debit		Credit
Cash		$2,500
Accounts receivable		1,000
Prepaid insurance		840
Supplies		140
Furniture		15,000
Accumulated depreciation – furniture				$1,200
Accounts payable				740
Salaries payable				610
Interest payable				34
Unearned revenue				200
Notes payable, due 2026				2,600
V. Wong, capital				5,500
V. Wong, drawings		8,300
Service revenue				30,436
Rent revenue				560
Depreciation expense		500
Insurance expense		740
Interest expense		120
Rent expense		2,000
Repairs expense		300
Salaries expense		9,100
Supplies expense		870
Utilities expense		470
		$41,880		$41,880

During the year, the owner V. Wong invested $1,200 in the business.

Prepare an income statement for Wong Consulting Services.

WONG CONSULTING SERVICES Income Statement December 31, 2021Month Ended December 31, 2021Year Ended December 31, 2021

WONG CONSULTING SERVICES Statement of Owner's Equity Year Ended December 31, 2021Month Ended December 31, 2021December 31, 2021

WONG CONSULTING SERVICES Balance Sheet December 31, 2021Month Ended December 31, 2021Year Ended December 31, 2021
Assets
					$
			$
					$
Liabilities and Owner's Equity

Calculate the current ratio and the acid-test ratio for Wong Consulting Services. (Round answers to 1 decimal place, e.g. 1.7:1)

Current ratio		: 1
Acid-test ratio		: 1

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Answer 1

Wong Consulting Services 30436 560 30996 Statement of Income For the period ending 31.12.2021 Service Revenue Rent Revenue Total Revenue Less: Depreciation Expense 500 Insurance Expense 740 Interest Expense 120 Rent Expense 2000 Repairs Expense 300 Salaries Expense 9100 Supplies Expense 870 Utilities Expense 470 Net Income 14100 16896 Statement of Owner's Equity For the period ending 31.12.2021 V.Wong , Capital 5500 Net Income 16896 22396 V.Wong, Drawings -8300 14096

Amounts in $ Amounts in $ Balance sheet As at 31.12.2021 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 2500 Accounts Payable 1000 Salaries Payable 840 Interest Payable 140 4480 Unearned Revenue 740 610 34 200 1584 Non Current Assets Furniture Accum. Depre- Furnit 2600 15000 -1200 Non Current Liabilities Notes Payable due 2026 13800 Owner's Equity V.Wong , Capital 18280 Total Liabilities & Equity 14096 18280 Total Assets Current Ratio = Current Assets / Current Liabilities = 4480 / 1584 = 2.83 Acid Test Ratio = Quick Assets / Current Liabilities = (2500 + 1000) / 1584 = 2.21