Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE ANSWER???!!! Presented below is the adjusted trial balance of Brown Investment Advisers as at 30 June 2021. Brown Investment Advisers Trial Balance As at
PLEASE ANSWER???!!!
Presented below is the adjusted trial balance of Brown Investment Advisers as at 30 June 2021. Brown Investment Advisers Trial Balance As at 30 June 2021 Debit $ Credit $ Cash at Bank 34,300 Accounts Receivable 9,100 2,100 7,000 203,000 - 1,750 18,200 3,150 Office Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment Accounts Payable Salary Payable Interest Payable Revenue received in advance Loan Payable (4 Years) Brown's, Capital Brown's, Drawings Service Revenue 350 5,600 140,000 52,500 2,800 61,600 Insurance Expense 4,900 16,800 Salary Expense 350 Supplies Expense Depreciation Expense - Equipment Interest Expense 1,750 1,050 283,150 283,150 Required: a) Prepare Brown Investment Advisers Income Statement for the year ended 30 June 2021. (8 Marks) b) Prepare Brown Investment Advisers Statement of Changes in Equity for the year ended 30 June 2021. (4 Marks) c) Calculate Brown Investment Advisers Profit Margin and Return on Assets ratios (the total assets at 30 June 2020 was $248,500) (Round off the answers to the nearest 2 decimal places). (2 Marks) d) (i) Calculate Brown Investment Advisers Current ratio and the Debt-to-total assets ratio at 30 June 2021 (Round off the answers to the nearest 2 decimal places). (2 Marks) (ii) Discuss Brown Investment Advisers liquidity and solvency positions at 30 June 2021 as compared to 2020 (the Current ratio was 1.06:1 and the Debt-to-total assets ratio was 72.5% at 30 June 2020). (4 Marks)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started