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1 . Knockoff Corporation makes a videogame unit known as the Gii. During the month of June, the following transactions occurred. Record any necessary journal
Knockoff Corporation makes a videogame unit known as the Gii. During the month of June, the following transactions occurred. Record any necessary journal entries for ae
a Knockoff purchased $ of raw materials inventory on account.
Account Title Debit Credit
Merchandise Inventory $
Accounts Payable $
b The company incurs salary expense of $ which will not be paid until the beginning of July.
Account Title Debit Credit
Salary Expense $
Salary Payable $
c Knockoff owes the IRS and other government entities $ in taxes.
Account Title Debit Credit
Income Tax Expense $
Income Tax Payable $
d OK Buy places an advance order for Giis and pays Knockoff $ The Giis will be shipped in July.
Account Title Debit Credit
Cash $
Unearned Sales Revenue $
e Knockoff owes a local bank $ in interest.
Account Title Debit Credit
Interest Expense $
Interest Payable $
f If Knockoff has $ in current assets, and all current liabilities are given in ae above, what is Knockoffs current ratio?
g Knockoffs main competitor, PlayItAgain, has a current ratio of You are trying to decide which company to invest in Which current ratio do you prefer? Why?
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