Question
Following is the adjusted trial balance for Simcoe Fishing Cabin: Debit Credit Cash $6,000 Accounts receivable 2,000 Prepaid insurance 800 Land 40,000 Building 50,000 Accumulated
Following is the adjusted trial balance for Simcoe Fishing Cabin:
|
| Debit | Credit |
| Cash | $6,000 |
|
| Accounts receivable | 2,000 |
|
| Prepaid insurance | 800 |
|
| Land | 40,000 |
|
| Building | 50,000 |
|
| Accumulated amortization |
| $32,000 |
| Accounts payable |
| 9,400 |
| Wages payable |
| 4,000 |
| Notes payableshort term |
| 3,200 |
Calculate the current ratio and the debt ratio, then comment on the firms liquidity and capital structure.
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International Accounting Standards Regulations Financial Reporting
Authors: Greg N. Gregoriou, Mohamed Gaber
1st Edition
0750669837, 978-0750669832
