Question

Jake Hill, M.D., reported the following trial balance as of September 30, 2018: (Click the icon to view the trial balance.) Data Table Calculate the debt ratio for Jake Hill, M.D. Select the debt ratio formula on the first line and then calculate the ratio. (Round the percentage to the nearest whole percent.) Jake Hill, M.D. Trial Balance September 30, 2018 Debt ratio % Balance Debit Account Title Cash Credit $ 37,000 8,000 Accounts Receivable Office Supplies 2,600 Land 27,000 60.000 29,000 $ 2,100 600 30,644 Building Office Equipment Accounts Payable Utilities Payable Unearned Revenue Notes Payable Hill, Capital Hill, Withdrawals Service Revenue Salaries Expense Utilities Expense 55,000 100,000 50,000 50,956 24,000 800 900 Advertising Expense 230 30 220 ann

Answer 1

Solution

Total debts	/	Total Assets	=	Debt ratio
$ 88,344.00	/	$ 163,600.00	=	54.00%

Working

Accounts payable	$          2,100
Utilities payable	$              600
Unearned revenue	$        30,644
Notes payable	$        55,000
Total debts	$        88,344

.

Cash	$        37,000
accounts receivable	$          8,000
Office supplies	$          2,600
land	$        27,000
building	$        60,000
office equipment	$        29,000
Total Assets	$     163,600