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The adjusted trial balance of Chelsea Ltd as at 30 June 2029 is given below Chelsea Ltd Adjusted trial balance 30 June 2020 Debit $
The adjusted trial balance of Chelsea Ltd as at 30 June 2029 is given below Chelsea Ltd Adjusted trial balance 30 June 2020 Debit $ Credits Cash at Bank 8400 4200 13800 17 000 4000 Accounts Receivable Office Supplies Office Equipment Accumulated Depreciation - Office equipment Accounts Payuble Unearned Revenue Share Capital Retained Earnings Dividends Paid 4000 5000 14 500 5400 1500 Service Revenue 13500 Interest revenue 3500 2400 Wages expensie Utistes expense 1600 Utilities expense 1600 Advertising expense 1800 1200 1600 Insurance expense Office Supplies Expense Depreciation Expense - Equipment Rent Expense 3500 2900 49 900 49 900 Required: a) Prepare Chelsea Lid's Statement of Income Statement for the year ended 30 June 2020. (10 Marks) b) Prepare Chelsea Ltd's Statement of Changes in Equity for the year ended 30 June 2020. (4 Marks) c) O Calculate Chelsea 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) (i) Explain your Current ratio and how it reflects on the company's ability to meet its obligations (2 Marks) d) ) The profit margin for Chelsea Ltd for 2019 and 2020 were 12% and 18% respectively. Interpret the meaning of profit margin for 2020. (1 Marki (1) Comment on the profitability trends of Chelsea Ltd from 2019 to 2020. (1 Mark) (Total 20 Marks)
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