CAPTER 4 Completing the Accounting Cyle d Classifying Accounts calculating curre

Question

CAPTER 4 Completing the Accounting Cyle d Classifying Accounts calculating current, quick, and debt to equity ratios Lo7 Problem 4-14A are the accountant at Indigo. Refer to Appendix II for l efer to Appendix for Indigo's Consolidated Balance Sheets as at 29,2014. Your manager has assigned you the a. Calculate the current ratio, quick ratio, and debt to equity ratios for 2013 and 2014. Round following tasks your answer to two decimal places. Comment on the ratios, the change between 2013 and 2014, and what additional information you would want to know to get a better picture of Indigo's financial performance. b. Problem 4-15A Adjusting, reversing, and subsequent cash entries LO8 The unadjusted trial balance for Lewis Fitness Centre as of December 31, 2017, follows: Account Debit $22.000 Accounts Supplies...9,000 300,000 30,000 Accumulated depreclation, equipment Interest payable. Salaries payable Unearned membership revenue Notes payable. Bev Lewis, capital!. Bev Lewis, withdrawals.. Membership revenue.r Depreciation expense, equipment... Salaries expense. Interest expense.... Supplies expense Totals. 48,000 100,000 116,500 60,000 180,000 76,000 7,500 $474.500 $474.500 Information I necessary to prepare adjusting entries is as follows: a. As of December 31, employees have earned $1,600 of unpaid and unrecorded wages. The next payday is January 4, and the total wages to be paid will be $2,400 e cost of supplies on hand at December 31 is $3,600. e. The note payable requires an interest payment to be made every three months. The amount pagment is due of unrecorded accrued interest at December 31 is $2,500, and the next unrecorde January 15. This payment will be $3,000. d. An auul ) earned at ned membership revenue shows that $32,000 remains un

Explanation / Answer

Adjusting Journal Entries

As on 31 Dec, 2017

(Year end unearned revenue is $32000, & adjusting entry

for the same has been done)

** Please try to provide complete image with full details. I've helped as far as I could.

Sl. No Particulars Dr $ Cr $ a Salaries A/c 1600 Outstanding Salaries 1600 (Salaries earned by employees but not recorded and paid) c Interest on Notes Payable 2500 Outstanding Interest 2500 (Interest due as on Dec 31 was not recorded in the book & paid yet) d Unearned membership Revenue 16000 Membership Revenue 16000

(Year end unearned revenue is $32000, & adjusting entry

for the same has been done)

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