Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Let me know if the Adjusted trial balance on December 31, 20X6 is needed to answer the below as I can provide it. Thank you!

Let me know if the Adjusted trial balance on December 31, 20X6 is needed to answer the below as I can provide it. Thank you!

Questions 4 through 10 are based on the following December 31, 20X6 year-end account balances for XYZ Co. after adjusting entries had been prepared but before the books were closed for the year.

Cash...250,000

Accounts receivable...680,000

Marketable securities...60,000

Prepaid insurance.35,000

Prepaid rent..30,000

Office equipment.....620,000

Accumulated depreciation: equipment...200,000

Land750,000

Accounts payable306,000

Dividends payable 50,000

Interest payable... 8,750

Income tax payable...30,000

Unearned client service revenue..180,000

Notes payable (long-term)...350,000

Common stock.750,000

Retained earnings.....315,200

Dividends.......75,000

Client service revenue...1,200,000

Travel expense....28,000

Office supplies expense..20,000

Advertising expense45,000

Salary expense...400,000

Utility expense.....40,000

Depreciation expense: equipment25,000

Interest expense....17,500

Insurance expense.....52,000

Rent expense..175,000

Income tax expense..87,450

Using the data for question 4, prepare the income statement for the year ended December 31, 20X6. Attach your response in an excel or word file.

Using the data from Question 4, Prepare the statement of retained earnings for the year ended December 31, 20X6. Attach your response in an excel or word file.

Using the data in Question 4, Prepare the statement of financial position as of December 31, 20X6. Attach your response in an excel or word file.

  1. Using the data in Question 4, Determine the working capital on December 31, 20X6.

    a.

    $350,756

    b.

    $480,250

    c.

    $580,520

    d.

    $574,750

  1. Using data from Question 4, Determine the current ratio on December 31, 20X6.

    a.

    1.8356

    b.

    3.4781

    c.

    2.8749

    d.

    1.1355

  1. Based on data from Question 4, Determine the acid-test (quick) ratio on December 31, 20X6.

    a.

    4.5586

    b.

    2.5000

    c.

    1.7225

    d.

    3.6752

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

9th Edition

1265672008, 978-1265672003

More Books

Students also viewed these Accounting questions