Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

The adjusted trial balance of Belmore Ltd 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 Receivable 2200 1800 15 000 Office Supplies Office Equipment Accumulated Depreciation - Office equipment Accounts Payable 4000 4000 Unearned Revenue 5000 12 000 Share Capital Retained Earnings 4400 Dividends Paid 2500 Service Revenue 3500 600 Office Supplies Expense Depreciation Expense - Equipment Rent Expense 2500 1900 32 900 32 900 Required: a) Prepare Belmore Ltd'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) c) (i) Calculate Belmore Ltd'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) d) (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

Forecasting Volatility In The Financial Markets

Authors: Stephen Satchell, John Knight

2nd Edition

0750655151, 9780750655156

More Books

Students also viewed these Accounting questions

Question

Do you suggest Lisa use a PEO? Why?

Answered: 1 week ago