Jones Company had the following adjusted account balances as of December 31, 201
ID: 2454289 • Letter: J
Question
Jones Company had the following adjusted account balances as of December 31, 2013. These accounts are presented in random order. At the beginning of the year, Jones Capital balance was $81,000. (16.5 points)
Compute net income for the year
Determine Jones’ Capital balance as of December 31, 2013
What is the total of current assets as of December 31, 2013
What is the total of plant assets as of December 31, 2013
What is the total of current liabilities as of December 31, 2013
Calculate the current ratio as of December 31 2013
DR CR Equipment 26,000 Accounts Payable 31,600 Revenue 110,000 Cash 42,500 Accumulated Depreciation 12,000 Long term notes payable 22,000 Accounts Receivable 31,800 Land 48,000 Wage Expense 42,000 Depreciation Expense 6,000 Wages Payable 6,200 Withdrawals 48,300 Advertising Expense 18,200Explanation / Answer
a)Net income = Revenue -expense
= 110000- 42000-6000-18200
= 43800
b)capital balance = capital at beginning +net income -withdrawls
= 81000 + 43800 - 48300
= 76500
c)current asset - receivable+ cash
= 31800+42500
= $ 74300
d)plant asset = (equipment -accumulated dep)+land
= (26000-12000) +48000
= $62000
e)current liabilities = accounts payable +wages payable
= 31600+6200
= 37800
f)current ratio = current asset/current liabilities
= 74300 / 37800
=1.97:1
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