Current assets totaled $54,000 and the current ratio was 1.5. Assume that the following transactions were completed:
Question:
(1) Purchased merchandise for $7,000 on short-term credit and
(2) Purchased a delivery truck for $12,000, paid $3,000 cash, and signed a two-year interest-bearing note for the balance.
Required:
Compute the cumulative current ratio after each transaction.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
Current Assets 1 Current Liabilities 2 Current ...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Current assets totaled $100,000 and the current ratio was 1.5. Assume that the following transactions were completed: (1) Paid $6,000 for merchandise purchased on short-term credit, (2) Purchased a...
-
Assume that the following transactions of Sleuth Book Store occurred during 2014 and 2015: 2014 Jan. 9 Purchased store fixtures at a cost of $50,000, signing an 8%, six-month note for that amount....
-
Assume that the following transactions occurred between Brighton Medical Supply and a Best drug store during April of the current year. Apr 6 Best purchased $5,800 of merchandise from Brighton...
-
The chief accountant for Dickinson Corporation provides you with the following list of accounts receivable that were written off in the current year: Dickinson Corporation follows the policy of...
-
Terrace Board Rentals was started on January 1, 2016, by Ryan Terrace with an investment of $50,000 cash. The company rents out snowboards and related gear from a small store. During the first 11...
-
For each of the following sets of atoms and ions, arrange the members in order of increasing size: (a). Se2-, Te2-, Se (b). Co3+, F2+, Fe3+ (c). Ca, Ti4+, Sc3+ (d). Be2+, Na+, Ne
-
Who is the father of the term forensic accounting? a. Max Lourie b. James McCleland c. Maurice E. Peloubet d. Robert Lindquist e. Someone else
-
You are auditing general cash for the Pittsburgh Supply Company for the fiscal year ended July 31, 2011. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the...
-
Question 1: On June 30, Bramble Corporation discontinued its operations in Mexico. During the year, the operating income was $392,000 before taxes. On September 1, Bramble disposed of the Mexico...
-
Arnold is the successful owner and operator of a small business. He plans to take a one-year vacation and is interviewing Minnie for the position of manager while he is away. On the basis of...
-
Lowes is a leading retailer in the home improvement field. Complete the component percentage analysis on the companys income statement that follows. Discuss any insights provided by thisanalysis....
-
The Bombay Company, Inc., markets a line of proprietary home furnishings that includes large furniture, occasional furniture, wall decor, and decorative accessories that are timeless, classic, and...
-
While the Federal Reserve controls short-term interest rates, long-term interest rates essentially depend on supply/demand dynamics, as well as longer-term interest rate expectations. In order to...
-
The Securities and Exchange Commission today charged the former CEO and CFO of FTE Networks Inc., a network infrastructure company formerly based in Naples, Florida, with conducting a multi-year...
-
We have the following information about AFGFR inc: Earnings before interest and taxes: $ 450.000 Interest paid: $ 55,000 Dividends paid to common shareholders: $ 30.000 Dividends paid to preferred...
-
1. Establish an employee earnings record for each of the company's four employees. Complete the top portion of each record. 2. Establish and complete the payroll register for each weekly pay period...
-
"Closing the gender gap in labor force participation and the gender gap in management in OECD countries can raise global economic activity by approximately 7%, or about $7 trillion in today's...
-
Cullumber Co. purchased machinery that cost $2450000 on January 4, 2022. The entire cost was recorded as an expense. The machinery has a 9-year life and a $145000 residual value. The error was...
-
The pictogram of Figure 2.11 is intended to illustrate the fact that per capita income in the United States doubled from $\$ 21,385$ in 1993 to $\$ 42,643$ in 2012. Does this pictogram convey a fair...
-
Identify one local business that uses a perpetual inventory system and another that uses a periodic system. Interview an individual in each organization who is familiar with the inventory system and...
-
Complete and balance each of the following neutralization reactions. (a) H 2 SO 4 (aq) + LiOH(aq) (b) H 2 SO 3 (aq) + LiOH(aq)
-
What are the similarities and differences between depreciation and amortization?
-
During a recent management meeting, Steve Micke, director of marketing, proposed that the company begin capitalizing its marketing expenditures as goodwill . In his words, Marketing expenditures...
-
Alford Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain.
-
Cash equivalents would not include: Multiple Choice U.S. treasury bills. Bank drafts. Money market funds. Cash not available for current operations. Janson Corporation Co.'s trial balance included...
-
22. All information recorded on the PCR must be: A.typewritten or printed. B.considered confidential. C.a matter of public record. D.reflective of your opinion
-
In other math, what is the definition of a polygon? Options: A ) A shape with curved sides and no angles. B ) A three - dimensional object with a circular base and a curved top. C ) A closed plane...
Study smarter with the SolutionInn App