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4-(7 Marks: b2:4, c2:3): Presented below is the adjusted trial balance of Risen Corporation at December 31, 2020. (7 M) Debit BD20,550 Cradit Cash Supplies
4-(7 Marks: b2:4, c2:3): Presented below is the adjusted trial balance of Risen Corporation at December 31, 2020. (7 M) Debit BD20,550 Cradit Cash Supplies 3,600 Prepaid Insurance 3,000 Equipment 144,000 Accumulated Depreciation-Equipment BD27,000 Trademarks 2,850 Accounts Payable 30,000 Salaries and Wages Payable 1,500 Unearned Service Revenue 6,000 Bonds Payable (due 2023) 27,000 Share capital-ordinary 30,000 Retained Earnings 60,000 Service Revenue 30,000 Salaries and Wages Expense 27,000 Insurance Expense 4,200 Rent Expense 3,600 Interest Expense 2,700 BD211,500 BD211,500 Total Additional information: 1. Net loss for the year was BD7,500. 2. No dividends were declared during 2020. Required: a. Prepare a classified statement of financial position as of December 31, 2020. (4 M) b. Compute each of the following ratios. For each of the two, indicate the manner in which it is Required: a. Prepare a classified statement of financial position as of December 31, 2020. (4 M) b. Compute each of the following ratios. For each of the two, indicate the manner in which it is computed and its significance as a tool in the analysis of the financial soundness of the company. (a)Current ratio (b)Debt to assets ratio. (3 M)
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