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ch4 - $21,000 2,860 3,500 3,000 BUSI1002R_Introduction to...

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BUSI1002R_Introduction to Accounting_Ch.4_Questions P.1 Chapter 4 Completing the accounting cycle (Question QS 4-3, QS 4-4, P 4-4B) Quick Study 4-3 Classifying balance sheet items The following are common categories on a classified balance sheet. A. Current assets B. Long-term investments C. Plant assets D. Intangible assets E. Current liabilities F. Long-term liabilities For each of following items, select the letter that identifies the balance sheet category where the item typically would appear. _____ _____ _____ _____ 1. Accounts payable 2. Store equipment 3. Wage payable 4. Cash ____ _ ____ _ ____ _ ____ _ 5. Land not currently used in operations 6. Notes payable (due in three years) 7. Accounts receivable 8. Trademarks Quick Study 4-4 Identifying current accounts and computing the current ratio Computing Palmolive Company’s current ratio using the following information. Accounts receivable Accounts payable Buildings Cash $18,000 11,000 45,000 7,000 Long-term notes payable Office supplies Prepaid insurance Unearned services revenue
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Unformatted text preview: $21,000 2,860 3,500 3,000 BUSI1002R_Introduction to Accounting_Ch.4_Questions P.2 Problem 4-4B Preparing closing entries, financial statements and ratios The adjusted trial balance for Myra Co. as of December 31, 2009, follows. S.Myra invested $7,500 cash in the business during year 2009 (the December 31,2008, credit balance of the S. Myra, Capital account was $125,100). Myra Company is required to make a $6,000 payment on its long-term notes payable during 2010. Required 1. Prepare the income statement and the statement of owner’s equity for the calendar year 2009 and the classified balance sheet at December 31, 2009. 2. Prepare the necessary closing entries at December 31, 2009. 3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets at December 31, 2008, were $200,000), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio....
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ch4 - $21,000 2,860 3,500 3,000 BUSI1002R_Introduction to...

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