Exercise 9-5 Current Liabilities and Ratios

Assume that Polly's accounting year ends on December 31. Identify and analyze the effect of any necessary adjusting journal entries. What is the total of the current liabilities at the end of the year. Several accounts that appeared on Kruse's 2012 balance sheet arc as follows: Required Prepare the Current section of Kruse's 2012 balance sheet. Compute Kruse's working capital. Compute Kruse's current ratio. What does this ratio indicate about Kruse's condition? Each of the following situations involves the use of discounts: How much discount may Seals Inc. take in each of the following transactions? What was the annualized interest rate? Seals purchases inventory costing $450, terms 2/10, n/40. Seals purchases new office furniture costing $1,500, terms 1/10, n/30