Closing Entries

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:

Oscar Killingsworth, Capital	$503,900
Oscar Killingsworth, Drawing	8,200
Fees Earned	279,100
Wages Expense	221,600
Rent Expense	43,800
Supplies Expense	9,000
Miscellaneous Expense	10,200

Journalize the two entries required to close the accounts.

If an amount box does not require an entry, leave it blank.

Apr. 30
Apr. 30

Closing Entries

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:

Oscar Killingsworth, Capital	$870,670
Oscar Killingsworth, Drawing	40,000
Fees Earned	563,005
Wages Expense	426,800
Rent Expense	102,400
Supplies Expense	38,410
Miscellaneous Expense	12,805

Journalize the two entries required to close the accounts.

If an amount box does not require an entry, leave it blank.

Apr. 30
Apr. 30

Working Capital and Current Ratio

Current assets and current liabilities for Konex Properties Company follow:

	20Y9		20Y8
Current assets	$2,042,400		$1,759,500
Current liabilities	1,380,000		1,150,000

a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places.

	20Y9		20Y8
Working capital	$		$
Current ratio

b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?

Working Capital and Current Ratio

Current assets and current liabilities for Sandstone Company follow:

	20Y9		20Y8
Current assets	$2,133,800		$1,613,300
Current liabilities	940,000		730,000

a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places.

	20Y9		20Y8
Working capital	$		$
Current ratio

b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?