Question

Charlie's Crispy Chicken (CCC) operates a fast-food restaurant. When accounting for its first year of business, CCC created several accounts Description Account Name Accounts Payable Cash Common Stock Equipment Land Notes Payable (long-term) 36,000 Payment is due in six years Retained Earnings Salaries and Wages Payable Supplies Balance $ 3,100 Payment is due in 30 days 3,600 Includes cash in register and in bank account 38,000 Stock issued in exchange for owners' contributions 51,000 Includes deep fryers, microwaves, dishwasher, etc. 24,400 Held for future site of new restaurant 4,100 Total earnings through September 30 300 Payment is due in 7 days 2,500 Includes serving trays, condiment dispensers, etc. Required 1. Using the above descriptions, prepare a classified balance sheet at September 30 2. Calculate CCC's current ratio Complete this question by entering your answers in the tabs below. Required 1Required 2 Using the above descriptions, prepare a classified balance sheet at September 30 CHARLIE'S CRISPY CHICKEN Balance Sheet Required 1 Required2

Answer 1

Balance sheet

Assets	$	Liabilities and Stockholders' equity	$
Current assets		Current liabilities
Cash	3,600	Accounts payable	3,100
Supplies	2,500	Salaries and wages payable	300
Total current assets	6,100	Total current liabilities	3,400
Property,plant and equipment		Long term liabilities
Equipment	51,000	Notes payable	36,000
Land	24,400	Stockholders's equity
Total property, plant and equipment	75,400	Common stock	38,000
		Retained earnings	4,100
		Total stockholders' equity	42,100
Total assets	81,500		81,500

Current ratio = Current assets/Current liabilities

= 6,100/3,400

= 1.79

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