The adjusted trial balance for Dufferin Company is shown below.
DUFFERIN COMPANY Adjusted Trial Balance December 31, 2020
Cash
Accounts Receivable
Prepaid Insurance
Land
Equipment
Accumulated Amortization-Equipment Accounts Payable
Salaries Payable
S. Dufferin, Capital
S. Dufferin, Drawings
Service Revenue
Repair Expense
Amortization Expense
Insurance Expense
Salaries Expense
Utilities Expense
Debit $ 10,200 7,500
1,800 100,000 28,000
252,000 7,200
64,000 3,200
8,800 1,200 36,000
3,700
Credit
$ 8,600 12,000 3,000
Required: Journalize the closing entries on December 31, 2020. 2. Selected financial information is available on July 31 for Drew Co.
Cash and Accounts Receivable Current Assets
Current Liabilities
Required:
2020 $22,680 35,100
24,460
2019 $20,430 33,510
24,800
a) Calculate (1) working capital, (2) current ratio, and (3) acid-test ratio for 2019 and 2020.
b) Indicate whether there was an improvement or deterioration in liquidity for