acc225chkpt4 - Current Liabilities = $14,000 Current Ratio...

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Checkpoint: Preparing Balance sheets and Statements Preparing Balance sheets and Statements Nikki Vergets Acc/225 2/17/11 Julie Goodin 1
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Quick Study: 4-4: Compute Jamar Company’s current ratio using the following information Accounts receivable……….15,000 Long –term notes payable…………20,000 Accounts payable………….10,000 Office supplies…………………….1,800 Buildings…………………..42,000 Prepaid insurance………………….2,500 Cash………………………...6,000 Unearned services revenue………..4,000 Current Assets = Cash + Accounts Receivable + Office Supplies + Prepaid Insurance Current Assets = $6,000 + $15,000 + $1,800 + $2,500 Current Assets = $25,300 Current Liabilities = Accounts Payable + Unearned Service Revenue Current Liabilities = $10,000 + $4,000
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Unformatted text preview: Current Liabilities = $14,000 Current Ratio = Current Assets / Current Liabilities Current Ratio = $25,300 / $14,000 Current Ratio = 1.81 QS 4-5 The following information is taken from the work sheet for Wayman Company as of December 31, 2005. Using this information, determine the amount for K. Wayman, Capital, that should be reported on its December 31, 2005, balance sheet. Income Statement Balance Sheet and Statement of Owners Equity Dr. Cr. Dr. Cr. K. Wayman, Capital 65,000 K. Wayman, Withdrawals 32,000 Totals 115,000 174,000 Net Income = $174,000 - $115,000 = $59,000 Wayman Capital, ending = Wayman Capital, beginning + Net Income - Withdrawals Wayman Capital, ending = $65,000 + $59,000 - $32,000 Wayman Capital, ending = $92,000 2 3...
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