The following information is provided for Everything Oak, Inc. at December 31, 2
ID: 2608299 • Letter: T
Question
The following information is provided for Everything Oak, Inc. at December 31, 2017: Everything Oak, Inc. Adjusted Trial Balance December 31,2017 (in thousands of dollars) Cash Accounts Receivable Interest Receivable Short-Term Investments Prepaid Expenses Supplies Plant, Property, & Equipment Land Accounts Pavable Accrued Wages Payable Dividends Payable Interest Payable Short-Term Notes Payable Long-Term Notes Payable Common stock (S.10 par value per share) Additional Paid-In Capital Retained Earnings DebitCredit 18,000 13,500 500 10,250 100 4,000 9,750 12,850 6,700 3,300 1.250 1,500 1,800 23,675 150 12.600 17,975 $68,950 $68,950Explanation / Answer
a) Journal Entries :
b) T - Accounts :
c) Classified Balance Sheet :
d) Current Ratio =
Dec 31, 2017 = CA / CL = 46350 / 14550 = 3.19
Dec 31, 2018 = 42700 / 10550 = 4.05
The liquidity has improved on Dec 31, 2018 because during 2018 current liabilities has reduced more than current assets.
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date Accounts Titles Debit $ Credit $ 1 CAsh 7600 CS 80 APIC 7520 (800 CS issued @9.5) 2 Supplies 1650 AP 1650 3 Cash 8750 AR 8750 4 Dividend payable 1250 Cash 1250 5 RE 750 Divi Payable 750 6 No Entry 7 PP & Equipment 9000 Cash 1500 LT Note Payable 7500 8 AP 4750 Cash 4750 9 Cash 8000 ST Investment 8000 10 LT Note Payable 5000 Interest Payable 400 Cash 5400 11 Prepaid Expenses 1200 CAsh 1200Related Questions
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