Chapter 13 Ex 2 #1

On January 1, 5G Company reported current assets of $194,400 and current liabilities of $162,000. Compute total current assets, total current liabilities, and the current ratio at January 1 and after each of the following transactions. (Round current ratio to two decimal places. Amounts to be deducted should be indicated with a minus sign.)

January 5	Purchased equipment to be used in operations for $48,600 cash.
January 12	Paid $13,500 cash for accounts payable.
January 18	Acquired a building in exchange for a $267,300 long-term note payable, first payment to occur in 3 years.
January 22	Purchased $32,400 of merchandise on credit, terms n/45.
January 31	Sold outdated machinery for $34,290 cash.

Date current Assets Current Liabilities Current Ratio

January 1

January 5

Balance, January 5

January 12

Balance, January 12

January 18

Balance, January 18

January 22

Balance, January 22

January 31

Balance, January 31