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Here below is needed, thanks in advance & I'll rate /The following information applies to the questions displayed below Ramirez Company is completing the information
Here below is needed, thanks in advance & I'll rate
/The following information applies to the questions displayed below Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries Trial Balance. December 31 of the Current Year Before After Adjusting Entrles Debit $13.500 Adjusting Entries Debit Credlt Credit tems a. Cash $ 13.500 b. Accounts receivable C. Prepald Insurance d. Equlpment 1.820 850 68,280 720 68,280 $ 42,100 S 48,100 1,380 112.000 f. Income taxes payable g. Common stock and additional paid-in capital h. Retained earnings, January 1 L Service revenue Salary expense k. Depreclation expense L Insurance expense m. Income tax expense 112.000 19.600 19.600 64.400 66.220 55,470 55,470 6,000 130 1,380 $ 238100 $ 238100 247300 $ 247.300 Required 1. Compare the amounts in the columns before and after the adjusting entries to reconstruct the adjusting entries made in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete and correct Transaction General Journal Debit Credit 0 1,820 Accounts receivable 1,820 Service revenue 130 nsurance expense 130 Prepaid insurance Depreciation expense 6,000 Accumulated depreciation, equipment 6,000 1,380 4 4 Income taxes expense 1,380 Income taxes payable 2-a. Compute the amount of income assuming that it is based on the amounts (a) before adjusting entries and (b) after adjusting entries. Amounts before Amounts after Adjusting Entries Adjusting Entries Revenues Expenses: Total expense Net income (loss) 3. Compute earnings per share, assuming that 3,000 shares of stock are outstanding all year. (Round your answer to 2 decimal places.) Earnings per share 4. Compute the total asset turnover ratio, assuming total assets at the beginning of the year were $110,000. If the industry average is 0.49. (Round your answer to 3 decimal places.) otal asset turnover ratioStep by Step Solution
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