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I just need help with the last 3 small problems on the assets ratios. Everything else is just the information prior to these problems. Thank
I just need help with the last 3 small problems on the assets ratios. Everything else is just the information prior to these problems. Thank you
On January 1, Year 1, the general ledger of a company Includes the following account balances: Credit Debit $ 59, eee 25,600 $ 2,500 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,600 15,600 158,000 15,180 223,000 54,200 $ 294,880 $ 294,880 During January Year 1, the following transactions occur: January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,880. January 8 Purchase additional inventory on account, $85,908. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Sales for January total $223,680. All of these sales are on account. The cost of the units sold is $116,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,300 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts recelvable balance calculated in the general ledger.) c. Accrued Interest revenue on notes receivable for January d Innaldi calaries at the end of lanuiar are 437.900 Credit Accounts Cash Interest Receivable Accounts Receivable Allowance for Uncollectible Accounts Debit $ 4,800 65 226,300 6.110 8,000 Inventory Note Receivable Land 15,600 158,000 19,800 250 91,200 32.900 9,300 Equipment Accumulated Depreciation Accounts Payable Salaries Payable Income Tax Payable Common Stock Retained Earnings Interest Revenue Sales Revenue Cost of Goods Sold Depreciation Expense Bad Debt Expense Salaries Expense Utilities Expense Income Tax Expense Totals 223,000 54,200 65 223.000 116,500 250 3,610 63.000 16,800 9,300 S 640,025 S 640,025 A 108,500 Multiple-Step Income Statement For the month ended January 31, Year 1 Sales Revenue $ 223,000 Cost of Goods Sold 116,500 Gross Profit Expenses Depreciation Expense 250 Bad Debt Expense 3.610 Salaries Expense 63.000 Utilities Expense 16,800 83,660 22,840 65 Total Operating Expenses Operating Income Interest Revenue Income before taxes Income Tax Expense Net Income 22,905 9,300 S 13,605 Answer is complete and correct. Balance Sheet January 31, Year 1 Assets Liabilities Cash $ 4.800 s 91,200 32,900 65 Accounts Payable Salaries Payable Income Tax Payable Interest Receivable Less: Allowance Accounts Receivable 9,300 (6.110) 226,300 Inventory 6,000 133,400 Total Current Assets 231,055 Total Current Liabilities Stockholder's Equity Common Stock Retained Earnings Notes Receivable 223,000 >> 15,800 158.000 Land 67,805 Equipment 19,800 Less: Accumulated Depreciation Total Stockholders' Equity 290,805 (250) $ 424,205 Total Assets Total Liabilities and Stockholders' Equity $ 424,205 No Date General Journal Debit Credit 1 January 31 Sales Revenue 223.000 65 Interest Revenue Retained Earnings 223.065 2 January 31 209,460 116.500 250 Retained Earnings Cost of Goods Sold Depreciation Expense Bad Debt Expense Salaries Expense Utilities Expense Income Tax Expense 3.610 83.000 16.800 9,300 Exercise 7-21B Part 7 7. Analyze how well the company manages Its assets: Requirement 1: a-1. Calculate the return on assets ratio for the month of January Return on Assets Ratio Choose Numerator Return on Assets Ratio Choose Denominator Average Total Assets Net Income Return on assets = 0 Requirement 2: b-1. Calculate the profit margin for the month of January Choose Numerator Net Income Profit Margin Choose Denominator Net Sales 223,000/= = Profit Margin Profit Margin 0.0% $ Requirement 3: C-1. Calculate the asset turnover ratio for the month of January Choose Numerator Asset Turnover Ratio Choose Denominator Average Total Assets Asset Turnover Ratio Asset Turnover Net Sales $ 223.000 0 times View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 31 250 Depreciation Expense Accumulated Depreciation 250 2 January 31 Bad Debt Expense 3.610 Allowance for Uncollectible Accounts 3.610 3 January 31 65 Interest Receivable Interest Revenue 65 4 January 31 32,900 Salaries Expense Salaries Payable 32.900 5 January 31 9.300 Income Tax Expense Income Tax Payable 9.300Step by Step Solution
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