Reference no: EM132430835
Questions -
Q1. The following is the Frederick Company's adjusted Trial Balance.
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Frederick Company Adjusted Trial Balance December 31, 2018
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Account Title
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Debit
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Credit
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Cash
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$85,150
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Accounts Receivable
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229,140
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Supplies
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16,955
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Equipment
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395,285
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Accumulated Depreciation
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$221,260
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Accounts Payable
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74,235
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Capital Stock
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220,000
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Retained Earnings
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101,145
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Service Revenue
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893,105
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Interest Income
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1,500
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Dividends
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2,000
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Rent Expense
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58,500
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Wages Expense
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527,260
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Supplies Expense
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42,520
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Utilities Expense
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8,595
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Depreciation Expense
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145,840
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Totals
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$1,522,565
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$1,522,565
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Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations. Hint: you must close out temporary accounts to arrive at adjusted retained earnings balance.
Q2. A partial list shows that Charles Corporation's adjusted trial balance included the following items (all account balances are normal):
Accounts payable $41,000, Accounts receivable $48,000, Capital stock $100,000, Cash $54,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $32,000, Note payable $24,000, Prepaid expenses $3,200, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000.
The note payable balance is due in nine months. How much is Charlie's current ratio?