Problem 4-7A Required 1. Prepare the company's classified balance sheet in report format at December 31, 2017. All adjustments have been journalized and posted, but
Problem 4-7A
Required
1. Prepare the company's classified balance sheet in report format at December 31, 2017.
All adjustments have been journalized and posted, but the closing entries have not yet been made.
2. Compute Bolton Travel's current ratio and debt ratio at December 31, 2017. At
December 31, 2016, the current ratio was 1.52 and the debt ratio was 0.37. Did Bolton
Travel's ability to pay both current and total debts improve or deteriorate during 2017?
& Accounting Book Horngren's.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools Accounting Book H... x A Sign In 244 / 756 Share BALTI DESIGN Adjusted Trial Balance June 30, 2017 Cash $ 12,610 Accounts receivable 15,882 Supplies 18,774 Prepaid insurance 1,920 Equipment 33,480 (Continued) 226 Part 1 The Basic Structure of Accounting (Continued) Accumulated amortization-equipment $ 9,888 Building 68,940 Accumulated amortization-building 10,110 Land 18,000 Accounts payable 25,040 Pa Interest payable 1.894 Wages payable 1,462 Unearned service revenue 1,380 to Notes payable, long-term 58,200 A. Kapoor, capital 41,034 A. Kapoor, withdrawals 28,180 Service revenue 83,916 Amortization expense-equipment 4.380 Amortization expense-building 2,382 Wages expense 13,882 Insurance expense 1,860 Interest expense 7,906 Utilities expense 2,580 Supplies expense 2,148 Total $232,924 $232,924 Problem 4-7A The accounts of Bolton Travel at December 31, 2017, are listed below in alphabetical order: Prepare a classified balance Accounts Payable .... $ 15,300 Interest Payable... $ 4,300 sheet in report format and calculate ratios Accounts Receivable .........". 19,800 Interest Receivable... 1,600 Land.... 62,500 5 6 Accumulated Total assets, $388,300 Amortization-Building ......... 113,400 Notes Payable, Accumulated Amortization- Long-term ....... 91,400 Furniture .... 34,800 Notes Receivable, Advertising Expense.... 6,600 Long-term ...... 12,500 Amortization Expense ... 3,900 Other Assets ... 9,300 Building..... 313,200 Other Current Liabilities .. 14,100 Cash ... 25,000 Prepaid Insurance... 3,300 Commission Revenue .... 280,500 Prepaid Rent.. 12,700 E. Bolton, Capital. 209,400 Salary Expense.. 73,800 E. Bolton, Withdrawals... 143,800 Salary Payable... 6,700 Furniture ...... 68,100 Supplies.... 8,500 Insurance Expense......... 2,400 Supplies Expense. 17,100 Unearned Commission Revenue .... 14,200 Required 1. Prepare the company's classified balance sheet in report format at December 31, 2017. All adjustments have been journalized and posted, but the closing entries have not yet been made. 2. Compute Bolton Travel's current ratio and debt ratio at December 31, 2017. At December 31, 2016, the current ratio was 1.52 and the debt ratio was 0.37. Did Bolton Travel's ability to pay both current and total debts improve or deteriorate during 2017? Problem 4-8A Preparing a worksheet, journal- izing the adjustments, closing Len Thomas, the accountant for Lancaster Consulting, prepared the worksheet shown on the accounts, assessing potential the next page on a computer spreadsheet but has lost much of the data. The only particular impact of IFR item Thomas can recall is that there was an adjustment made to correct an error where $600 1 3 4 5 6 7 of supplies, purchased on credit, had been incorrectly recorded as $600 of equipment 3. Total assets, $205,600 Chapter 4 Completing the Accounting Cycle 227 8.50 x 11.00 in O W 9 2 ENG 02:11 PM 19-05-2019
