Selected balance sheet accounts for Tibbetts Company on September 30, 2019, are as follows: canh Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current annet Accounts payable Other accrued liabilities Short-term debt Total current liabilities $.44.800 126,000 154,000 175,000 19.600 $519,400 $308,000 26,400 48,000 $182,400 Required: a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2019. b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare journal entries for the below transactions and indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use for increase, - for decrease, and (NE) for no effect. 1. Credit sales for the year amounted to $336,000. The cost of goods sold was $218,400, 2. Collected accounts receivable, $352,800. 3. Purchased Inventory on account, $235.200 4. Issued 700 shares of common stock for $25 per share. 5. Wrote off $9,800 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $28,000. 7. Sold marketable securities costing $36,400 for $43,400 in cash. 8. Recorded insurance expense for the year. $16,800. The premium for the policy was paid in June 2019, 9. Borrowed cash on a short-term bank loan $14,000 10. Repaid principal of $56,000 and interest of $4,200 on a long-term bank loan Complete this question by entering your answers in the tabs below. Required A Required 1 Required B2 Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2019. (Round "Ratio" answers to 2 decimal places.) Working capital Current ratio Acid-test ratio Required B1 > Journal entry worksheet 2 3 4 5 6 7 8 11 Credit sales for the year amounted to $336,000. Note: Enter debits before credits General Journal Debit Transaction + 1(a) Credit Record entry Clear entry View general Journal Required A Required B1 Required B2 Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase, - for decre (NE) for no effect. Working Capital NE Current Ratio Acid-Test Ratio Transaction Event 0. Example: Paid accounts payable, $585,000, 1. Credit sales for the year amounted to $360,000. The cost of goods sold was $234,000 2. Collected accounts receivable, $378,000 3. Purchased inventory on account, $262,000. 4. Issued 250 shares of common stock for $54 per share. 5. Wrote off $10,500 of uncollectible accounts using the allowance for bad debts. 6. Declared and paid a cash dividend, $30,000 7. Sold marketable securities costing $39,000 for $46,500 in cash 8. Recorded insurance expense for the year. $18,000. The premium for the policy was paid in June 2019. 9. Borrowed cash on a short-term bank loan, $15,000. 10. Repaid principal of $60,000 and interest of $4,500 on a long term bank loan
