Question
The following items are taken from the financial statements of BCT Company for 2013: Cash $138,800 Accounts Payable 75,000 Supplies 15,000 Accounts Receivable 35,000 Inventory
The following items are taken from the financial statements of BCT Company for 2013:
Cash
$138,800
Accounts Payable
75,000
Supplies
15,000
Accounts Receivable
35,000
Inventory
45,000
Salaries Payable
30,000
Unearned Revenue
45,000
Property, plant, and equipment, net
318,000
Intangible assets
260,000
Common Stock
100,000
Additional Paid-in Capital
400,000
Retained Earnings, 12/31/2012
21,000
Long-term debt
90,000
Service revenue
746,000
Cost of Goods Sold
639,200
Rent expense
30,000
Supplies expense
5,000
Insurance expense
21,000
Instructions:
(1) Create a classified balance sheet in good form for the year ended 2013. (30 points)
(2) Calculate the current ratio and debt ratio and explain your findings. (6 points)
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
