Question
The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Draper Production Company follow. (Click the icon to
The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of Draper Production Company follow. (Click the icon to view the adjusted trial balance and income statement from the worksheet.) Click the icon to view the adjusting entries.) Read the requirements. Requirement 1. Use the data in the partial worksheet to prepare Draper Production Company's classified balance sheet at December 31 of the current year. Use the report format. First you must calculate the adjusted balance for several of the balance-sheet accounts. Let's prepare the balance sheet for Draper Production Company. (If an input field is not used in the balance sheet leave the field empty; do not select a label or enter a zero.) Draper Production Company Balance chant Data table Draper Production Company Unadjusted Trial Balance Adjustments. Account Debit Credit Debit Credit Debit Adjusted Trial Balance Credit Cash 13,890 Prepaid rent 1,100 Equipment 48,000 Accumulated depreciation- equipment 3,200 Accounts payable 4,000 Salary payable Data table Unearned service revenue 9,300 Income tax payable Notes payable, long-term Common stock Retained earnings 12,000 8,800 19,490 Dividends 1,200 13,000 19,600 Service revenue 4,300 4,600 Salary expense Rent expense 1,300 1,900 400 Depreciation Expense-equipment Data table NULES payauie, lung-e!!! Common stock Retained earnings Dividends Service revenue Salary expense Rent expense I x sib pos 8,800 n C 19,490 1,200 13,000 19,600 4,300 4,600 1,300 1,900 400 1,000 ecer $ 69,790 69,790 $ 7,900 $ 19,600 eld e Depreciation Expense-equipment Income tax expense Total Requirement 2. Calculate Draper Production Company's net working capital, current ratio, and debt ratio at December 31. A year ago, net working capital was $6,690, the current ratio was 1.86, and the debt ratio was 0.24. Indicate whether the company's ability to pay its debts-both current and total-improved or deteriorated during the current year. (Round your answers to two decimal places.) The net working capital is The current ratio is The current ratio is The debt ratio is The ability to pay current liabilities with current assets has The overall ability to pay total liabilities has
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