assist you in peparing for exams REQUIRED: Use the following information for the
ID: 2395122 • Letter: A
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assist you in peparing for exams REQUIRED: Use the following information for the eight questions which follow. Heather Company has the following account balances after adjusting entries at Dece 31, 2011: Cash Bonds Payable (due 2050) Accounts Payable Dividends Treasury Stock, Common (22,000 shares) Preferred Stock ($10 par) 137,000 100,000 22,000 20,000 98,000 80,000 220,000 8,000 240,000 90,000 400,000 940,000 70,000 720,000 18.000 15,000 95,000 40,000 Paid-in Capital in Excess of Par Value, Preferred Equipment Accounts Receivable Common Stock ($1 par) Sales Merchandise Inventory Cost of Goods Sold Allowance for Doubtful Accounts Operating Expenses Accumulated Depreciation- Equipment Paid-in Capital in Excess of Par Value, Common Retained Earnings (1/1/2011) 27,000 1. The adjusted trial balance on December 31, 2011, would balance at: 2. The net income for the year is: 3.The total owners' equityoon the December 31, 2011balance sheet is: 4. The total assets on the December 31, 2011 balance sheet is: 5. The total current assets on the December 31, 2011 balance sheet is 6·The current ratio on December 31, 2011 is:Explanation / Answer
1.
The adjusted trial balance on December 31, 2011, would balance at $1,690,000.
2.
The net income for the year is $125,000.
3.
Total Owners' Equity is $562,000.
4. Total Assets is $702,000
5. Total Current Assets is $282,000
6. Current Ratio = Current Assets/Current Liabilities = 282000/40000 = 7.05
Heather Company Adjusted Trial Balance As at Dec 31,2011 Debit Credit Cash 137000 Bonds Payable 100000 Accounts Payable 22000 Dividends 20000 Treasury Stock 98000 Preferred Stock 80000 Land 220000 Paid in Capital in excess of Par Value, Preferred 8000 Equipment 240000 Accounts Receivable 90000 Common Stock 400000 Sales 940000 Merchandise Inventory 70000 Cost of Goods Sold 720000 Unearned Revenue 18000 Allowance for Doubtful Debts 15000 Operating Expenses 95000 Accumulated Depreciation - Equipment 40000 Paid in Capital in excess of Par Value, Common Stock 40000 Retained Earnings 27000 Total 1690000 1690000Related Questions
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