Reference no: EM132429449

Questions -

Q1. On January 1, 20X1, Bravo Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepared the general journal adjusting entry (without explanation) needed for December 31, 20X1. If no entry is required then write "No Entry Required."

Q2. On Tuesday March 31, 20X1 the Bravo Company had accrued wages of $2,000. Friday, April 3, Bravo paid employee wages of $5,000 for the week. Prepared the general journal entry (without explanation) needed for March 31, 20X1. If no entry is required then write "No Entry Required."

Q3. During 2018, Towson Company had credit sales of $48,000 and cash sales of $16,000. In 2018 Towson collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $57,000; of this amount, $42,900 was paid in 2018, and the remaining balance represented a liability at year-end. In addition to these operating expenses, Towson also purchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was $6,000. What is Towson's 2018 accrual basis net income or loss? Enter a loss as a negative number.

Q4. A partial list shows that Charles Corporation's adjusted trial balance included the following items (all account balances are normal):

Accounts payable $35,000, Accounts receivable $52,500, Capital stock $100,000, Cash $46,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $4,100, Inventory $32,000, Note payable $24,000, Prepaid expenses $4,600, 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? (Round your answer to two decimal places.)