TL 1 Help Selected balance sheet accounts for libbetts Company on September 30, 2019, are as follows: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Accounts payable Other accrued liabilities Short-term debt Total current liabilities $ 41,600 117,000 143,000 162,500 18,200 $482,300 $135,000 33,000 60,000 $228,000 Required: a. Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2019. b. Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare journal entries for the below transactions and indicate the effect of each item on Tibbetts Company's working capital current ratio, and acid-test ratio. Use + for increase. - for decrease, and (NE) for no effect. 1. Credit sales for the year amounted to $312.000. The cost of goods sol was $202,800 2. Collected accounts receivable, $327600. 3. Purchased inventory on account, $218,400. 4. Issued 650 shares of common stock for $23 per share. 5. Wrote off $9,100 of uncollectible accounts using the allowance for bad debts. 6 Declared and paid a cash dividend $26,000. 7. Sold marketable securities costing $33,800 for $40,300 in cash. 8. Recorded insurance expense for the year. $15,600. The premium for the policy was paid in June 2019. 9. Borrowed cash on a short-term bank loan $13,000 10. Repaid principal of $52,000 and interest of $3.900 on a long-term bank loan search O a pense Tur the year. $15,600. The premium for the policy was paid in June 2 9. Borrowed cash on a short-term bank loan, $13,000 10. Repaid principal of $52,000 and interest of $3,900 on a long-term bank loan. ed Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2015 Ratio answers to 2 decimal places.) Working capital Current ratio Acid-test ratio Required B1 > re to search o a Required A Required B1 Required B2 Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare fournal entries for the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.), 1. Credit sales for the year amounted to $312,000. The cost of goods sold was $202,800. 2. Collected accounts receivable, $327,600. 3. Purchased inventory on account, $218,400. 4. Issued 650 shares of common stock for $23 per share. 5. Wrote off $9,100 of uncollectible accounts using the allowance for bad debts. 6. Dedared and paid a cash dividend, $26,000. 7. Sold marketable securities costing $33,800 for $40,300 in cash. 8. Recorded insurance expense for the year, $15,600. The premium for the policy was paid in June 2019. 9. Borrowed cash on a short-term bank loan, $13,000. 10. Repaid principal of $52,000 and interest of $3,900 on a long-term bank loan. Show less View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 > Credit sales for the year amounted to $312,000. a arch ** Required A Required B1 Requited B2 Required B2 Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use for increase, -- for (NE) for no effect. action Event NE + 0. Example: Paid accounts payable, 5585,000. 1. Credit sales for the year amounted to $360,000. The cost of goods sold was $234,000. 2. Collected accounts receivable, 5378,000 3. Purchased inventory on account, 5252,000 4. Issued 250 shares of common stock for $54 per share. 5. Wrote off $10,500 of uncollectible accounts using the allowance for bad debts 6. Declared and paid a cash dividend, $30,000 7. Sold marketable securities costing $39,000 for $46,500 in cash 8 Recorded insurance expense for the year, $18,000. The premium for the policy was paid in June 2019 9. Borrowed cash on a short-term bank loan $15,000 10. Repaid principal of $60,000 and interest of $4.500 on a long-term bank loan ch O a
