Question
Palm Realtors Ltd. Adjusted Trial Balance December 31, 2019 Cash $ 8,950 Accounts receivable 53,530 Prepaid rent 2,200 Equipment 45,690 Accumulated amortization $ 18,930 Accounts
Palm Realtors Ltd.
Adjusted Trial Balance
December 31, 2019
Cash |
| $ 8,950 |
|
|
Accounts receivable |
| 53,530 |
|
|
Prepaid rent |
| 2,200 |
|
|
Equipment |
| 45,690 |
|
|
Accumulated amortization |
|
|
| $ 18,930 |
Accounts payable |
|
|
| 15,900 |
Interest payable |
|
|
| 900 |
Salary payable |
|
|
| 3,500 |
Income tax payable |
|
|
| 4,700 |
Note payable (due 2025) |
|
|
| 19,500 |
Common shares |
|
|
| 8,000 |
Retained earnings |
|
|
| 29,325 |
Dividends |
| 30,000 |
|
|
Commissions |
|
|
| 227,480 |
Depreciation expense |
| 6,260 |
|
|
Salary expense |
| 140,500 |
|
|
Rent expense |
| 26,400 |
|
|
Interest expense |
| 1,500 |
|
|
Income tax expense |
| 13,205 |
|
|
Total |
| $328,235 |
| $328,235 |
Question 5 (Continued)
- Compute the current ratio for Palm Realtors Ltd for 2019. Did the company appear to be able to meet its short-term obligations as they come due? Why? (3marks)
Current Ratio =
______________________________________________________________________
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