Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The adjusted trial balance of Belmore Lid as at 30 June 2020 is given below. Belmore made a Loss of $1500 for the year. Belmore

image text in transcribed

image text in transcribed
The adjusted trial balance of Belmore Lid as at 30 June 2020 is given below. Belmore made a Loss of $1500 for the year. Belmore Ltd Adjusted trial balance 30 June 2020 Debit $ Credit $ Cash at Bank 6400 Accounts Recely 2200 Office Supplies 1800 Office Equipment 15 000 Accumulated Depreciation - Office equipment 4000 Accounts Payable 4000 Unearned Revenue 5000 Share Capital 12 000 Retained Earnings 4400 Dividends Paid 2500 Service Revenue 3500 Office Supplies Expense 600 Depreciation Expense - Equipment 2500 Rent Expense 1900 32 900 32 900 Required: 3) Prepare Belmore Lid's Statement of Changes in Equity for the year ended 30 June 2020. (4 Marks) b) Prepare Belmore Ltd's Statement of financial position at 30 June 2020. (10 Marks) (i) Calculate Belmore Lid's Current ratio and the Debt-to-total assets ratio at 30 June 2020. (Round off the answers to the nearest 2 decimal places). (2 Marks) (ii) Explain your Current ratio and how it reflects on the company's ability to meet its obligations. (2 Marks) (i) The profit margin for Belmore Ltd for 2019 and 2020 were 18% and 15% respectively. Interpret the meaning of profit margin for 2020. (1 Mark) (ii) Comment on the profitability trends of Belmore Ltd from 2019 to 2020. (1 Mark) (Total 20 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

3rd edition

9781337909402, 978-1337788281

More Books

Students also viewed these Accounting questions

Question

How is inventory tracked under a perpetual inventory system?

Answered: 1 week ago

Question

7. One or other combination of 16.

Answered: 1 week ago