Question
An alphabetical list of the adjusted trial balance accounts for North Country Rentals after its first year of operations ending March 31, 2020, is shown
An alphabetical list of the adjusted trial balance accounts for North Country Rentals after its first year of operations ending March 31, 2020, is shown below:
Account | Adjusted Account Balance* | |||
Accounts payable | $ | 8,300 | ||
Accumulated depreciation, building | 24,200 | |||
Accumulated depreciation, furniture | 2,700 | |||
Advertising expense | 15,400 | |||
Building | 583,000 | |||
Cash | 16,200 | |||
Depreciation expense, building | 24,200 | |||
Depreciation expense, furniture | 2,700 | |||
Furniture | 41,200 | |||
Interest expense | 10,180 | |||
Interest payable | 720 | |||
Janitorial expense | 40,200 | |||
Land | 102,000 | |||
Long-term notes payable | 354,000 | |||
Notes receivable, due 2023 | 135,000 | |||
Office salaries expense | 122,625 | |||
Office supplies | 620 | |||
Office supplies expense | 5,300 | |||
Brand name | 2,200 | |||
Prepaid advertising | 320 | |||
Rent revenue | 390,400 | |||
Rent receivable | 15,200 | |||
Salaries payable | 2,225 | |||
Utilities expense | 35,920 | |||
Wyett North, capital | 396,920 | |||
Wyett North, withdrawals | 27,200 | |||
*Assume all accounts have a normal balance. Required: 1. Calculate the capital balance as it would appear on the March 31, 2020, balance sheet.
2.Prepare a classified balance sheet. Assume that $211,000 of the Long-Term Notes Payable will be paid during the year ended March 31, 2021. Also, $51,000 of the notes receivable will be collected by March 31, 2021.
3.Calculate the current ratio and the debt to equity ratio.
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