Chapter 3 Review Questions (2).docx - Chapter 3 Review Questions 1 The following selected balances came from ABC Companys adjusted trial balance for

Chapter 3 Review Questions (2).docx - Chapter 3 Review...

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Chapter 3 Review Questions 1. The following selected balances came from ABC Company’s adjusted trial balance for December 31, 2012. Salaries Payable$15,000Accounts Receivable16,500Accounts Payable20,000Income taxes payable 5,500Cash 16,700Dividends payable14,200Prepaid insurance3,000Mortgage payable 100,000Inventory250,000Sinking fund assets63,400Short term investments12,500Discount on Bonds Payable4,000Investment in Subsidiary50,000a.The amount that should be reported as current assets is _______________. b.The amount that should be reported as current liabilities is ________________. c.What is ABC Company’s current ratio? _______________2. XYZ Company had the following selected account balances at December 31, 2012:Bonds payable, due 2013$ 125,000Premium on bonds payable, due 20136,000Accounts payable12,000Dividends payable3,500Notes payable, due 2015250,000a.What amount should be reported as current liabilities in the balance sheet? 3. Given the following information below, calculate ECC Company’s rate of return on assets for 2012:

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