On December 31, Alberta supplies prepared an income statement and balance sheet before processing four adjusting...
On December 31, Alberta supplies prepared an income statement and balance sheet before processing four adjusting entries. The income statement showed net income of $40,000. The balance sheet showed total current assets $30,000, fixed assets 100,000; total liabilities $60,000; and owner’s capital $30,000.
Adjusting entries
1.depreciation of equipment $10000
2.salaries of $20000 for the last two days in December that are owed to the employees
3.prepaid rent of $7500 has expired
4.rendered service for $3500 and has not billed customer
yet
Question
Please calculate the following ratios:
1. Working Capital
2. Current Ratio
Homework Answers
1) Working Capital = Current Assets - Current Liabilities
= 26000 - 80000
= (54000)
2) Current Ratio = Current Assets / Current Liabilities
= 26000 / 80000
= 0.33 : 1
Explanation:
*It is assumed that there is no Non- current liabilities.
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On December 31, Alberta supplies prepared an income statement
and balance sheet before processing four adjusting...
On December 31, Alberta supplies prepared an income statement and balance sheet before processing four adjusting...
On December 31, Alberta supplies prepared an income statement and balance sheet before processing four adjusting entries. The income statement showed net income of $40,000. The balance sheet showed total current assets $30,000, fixed assets 100,000; total liabilities $60,000; and owner’s capital $30,000. Please calculate the following ratios: 1. Working Capital 2. Current Ratio
On December 31, 2022, Pharoah Company prepared an income statement and balance sheet, but failed to...
On December 31, 2022, Pharoah Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $168,000, total liabilities $78,400, and stockholders' equity $89,600. The incorrect income statement showed net income of $78,400. 1. The data for the three adjusting entries were: Salaries and wages amounting to $11,200 for the last 2 days in December were not paid and not recorded. The next payroll will be in January....
On December 31, 2020, Blossom Company prepared an income statement and balance sheet, but failed to...
On December 31, 2020, Blossom Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $156,000, total liabilities $66,000, and owner's equity $83,000. The incorrect income statement showed net income of $71,000. The data for the three adjusting entries were: Salaries and wages amounting to $10,200 for the last 2 days in December were not paid and not recorded. The next payroll will be in January Rent...
adjusting entries On December 31, 2013, the bookkeeper of Atomic Company prepared a statement of income...
adjusting entries
On December 31, 2013, the bookkeeper of Atomic Company prepared a statement of income and a balance sheet. The statement of income showed net income of $60,000 while the balance sheet reflected total assets of $320,000, total liabilities of $80,000, and shareholders equity of $240,000. The controller of the company realized that the statements were incorrect as the bookkeeper had not prepared adjusting journal entries relating to the following information: 1. Wages amounting to $47,000 for the last...
On December 31, Fawzi Company prepared an income statement and balance sheet and failed to take...
On December 31, Fawzi Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect basis, reflected pretax income of $77,000. The balance sheet (before the effect of income taxes) reflected total assets, $179,000; total liabilities, $75,000; and stockholders' equity, $104,000. The data for the four adjusting entries follow: a. Wages amounting to $28,000 for the last three days of December were not paid and not recorded...
On December 31. 2015. Alan and Company prepared an income statement and balance sheet but failed...
On December 31. 2015. Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries. The income statement, prepared on this incorrect basis, reported income before income tax of $28,500. The balance sheet (before the effect of income taxes) reflected total assets, $87,000: total liabilities, $38,500: and stockholders' equity, $48,500. The data for the four adjusting journal entries follow b. Salaries and Wages amounting to $16.700 for the last three days...
On December 31, 2017, Blossom Company prepared an income statement and balance sheet, but failed to...
On December 31, 2017, Blossom Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $147,000, total liabilities $68,600, and stockholders' equity $78,400. The incorrect income statement showed net income of $68,600. The data for the three adjustments were: 1. Salaries and wages amounting to $9,800 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. 2. Rent...
On December 31, 2017, Carla Vista Co. prepared an income statement and balance sheet, but failed...
On December 31, 2017, Carla Vista Co. prepared an income
statement and balance sheet, but failed to take into account three
adjustments. The balance sheet showed total assets $135,000, total
liabilities $63,000, and stockholders’ equity $72,000. The
incorrect income statement showed net income of $63,000.
The data for the three adjustments were:
1.
Salaries and wages amounting to $9,000 for the last 2 days in
December were not paid and not recorded. The next payroll will be
in January.
2....
Exercise 242 On December 31, 2017, Colski Company prepared an income statement and balance sheet and...
Exercise 242 On December 31, 2017, Colski Company prepared an income statement and balance sheet and failed to take into account three adjustments. The incorrect income statement showed net income of $40,000. The balance sheet showed total assets, $130,000; total liabilities, $60,000; and stockholders' equity, $70,000. The data for the three adjustments were (1) Depreciation of $9,000 was not recorded on equipment. (2) Salaries and wages amounting to $10,000 for the last two days in December were not paid and...
10.00 points On December 31, Fawal Company prepared an income statement and balance sheet and failed...
10.00 points On December 31, Fawal Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect bass, vected preta Income of $73.000. The balance sheet before the effect of income taxes) reflected totale $173,000 total liabilities. 80.000and stockholders' equity, 584,000. The data for the four wingers low a. Wagos amounting to $20,000 for the last three days of December were not paid and not recorded the...
On December 31, 2022, Pharoah Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $168,000, total liabilities $78,400, and stockholders' equity $89,600. The incorrect income statement showed net income of $78,400. 1. The data for the three adjusting entries were: Salaries and wages amounting to $11,200 for the last 2 days in December were not paid and not recorded. The next payroll will be in January....
On December 31, 2020, Blossom Company prepared an income statement and balance sheet, but failed to take into account three adjusting entries. The balance sheet showed total assets $156,000, total liabilities $66,000, and owner's equity $83,000. The incorrect income statement showed net income of $71,000. The data for the three adjusting entries were: Salaries and wages amounting to $10,200 for the last 2 days in December were not paid and not recorded. The next payroll will be in January Rent...
adjusting entries
On December 31, 2013, the bookkeeper of Atomic Company prepared a statement of income and a balance sheet. The statement of income showed net income of $60,000 while the balance sheet reflected total assets of $320,000, total liabilities of $80,000, and shareholders equity of $240,000. The controller of the company realized that the statements were incorrect as the bookkeeper had not prepared adjusting journal entries relating to the following information: 1. Wages amounting to $47,000 for the last...
On December 31, Fawzi Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect basis, reflected pretax income of $77,000. The balance sheet (before the effect of income taxes) reflected total assets, $179,000; total liabilities, $75,000; and stockholders' equity, $104,000. The data for the four adjusting entries follow: a. Wages amounting to $28,000 for the last three days of December were not paid and not recorded...
On December 31. 2015. Alan and Company prepared an income statement and balance sheet but failed to take into account four adjusting journal entries. The income statement, prepared on this incorrect basis, reported income before income tax of $28,500. The balance sheet (before the effect of income taxes) reflected total assets, $87,000: total liabilities, $38,500: and stockholders' equity, $48,500. The data for the four adjusting journal entries follow b. Salaries and Wages amounting to $16.700 for the last three days...
On December 31, 2017, Blossom Company prepared an income statement and balance sheet, but failed to take into account three adjustments. The balance sheet showed total assets $147,000, total liabilities $68,600, and stockholders' equity $78,400. The incorrect income statement showed net income of $68,600. The data for the three adjustments were: 1. Salaries and wages amounting to $9,800 for the last 2 days in December were not paid and not recorded. The next payroll will be in January. 2. Rent...
On December 31, 2017, Carla Vista Co. prepared an income
statement and balance sheet, but failed to take into account three
adjustments. The balance sheet showed total assets $135,000, total
liabilities $63,000, and stockholders’ equity $72,000. The
incorrect income statement showed net income of $63,000.
The data for the three adjustments were:
1.
Salaries and wages amounting to $9,000 for the last 2 days in
December were not paid and not recorded. The next payroll will be
in January.
2....
Exercise 242 On December 31, 2017, Colski Company prepared an income statement and balance sheet and failed to take into account three adjustments. The incorrect income statement showed net income of $40,000. The balance sheet showed total assets, $130,000; total liabilities, $60,000; and stockholders' equity, $70,000. The data for the three adjustments were (1) Depreciation of $9,000 was not recorded on equipment. (2) Salaries and wages amounting to $10,000 for the last two days in December were not paid and...
10.00 points On December 31, Fawal Company prepared an income statement and balance sheet and failed to take into account four adjusting entries. The income statement, prepared on this incorrect bass, vected preta Income of $73.000. The balance sheet before the effect of income taxes) reflected totale $173,000 total liabilities. 80.000and stockholders' equity, 584,000. The data for the four wingers low a. Wagos amounting to $20,000 for the last three days of December were not paid and not recorded the...
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