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A group of four students decided to start a residential landscaping and snowplowing business, RedBear Landscaping Company (RBLC). This List of Accounts is as
A group of four students decided to start a residential landscaping and snowplowing business, RedBear Landscaping Company (RBLC). This List of Accounts is as of the end of their first year of business. Required: 1. From the List of Accounts, prepare a well-formatted, classified balance sheet as of the date noted. 1a. "Classified" requires having subtotals for Current Assets and for Current Liabilities. Refer to good-form FS. 2. Prove the accounting equation (must document evidence of this step). 3a. Calculate the current ratio. 3b. Analyze results: What does this ratio indicate about the ability of the company to pay its current liabilities? Common Errors, do not submit until fixed: missing Total CA, Total CL; BS does not balance; narrative does not explain specifically what results mean for the company. Cash Accounts Receivable Supplies Prepaid Rent Equipment Vehicles Office Furniture Accumulated Depreciation Accounts Payable Accrued Wages Payable Note Payable (due in six months) Loan Payable (due in five years) Common Stock, no par Retained Earnings $ 11,000 1,000 9,000 6,000 22,000 49,000 4,000 15,000 5,000 2,000 10,000 30,000 28,000 12,000
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