Question: Required Using the information from the alphabetized post closing trial balance

Required Using the information from the alphabetized post-closing trial balance below, prepare a classified balance sheet for Waratah Pharmaceuticals Inc. as at March 31, 2014. Be sure to use proper form including all appropriate subtotals.
Account Description.....................Account Balance*
Accounts payable .................................................................................. $ 20,400
Accounts receivable .............................................................................. 67,200
Accumulated amortization, patent........................................................ 50,400
Accumulated depreciation, equipment.................................................. 148,800
Accumulated depreciation, vehicles ....................................................... 62,400
Advertising payable ............................................................................... 3,000
Allowance for doubtful accounts........................................................... 3,600
Cash..................................................................................................... 28,800
Common shares, 100,000 shares authorized; 25,000 shares
were issued at an average price of $9.60; market price per share on
March 31, 2014, was $10.80................................................................................ ?
Equipment............................................................................................ 468,000
Income tax payable ............................................................................... 55,200
Notes payable** .................................................................................... 144,000
Patent ................................................................................................... 115,200
Prepaid rent .......................................................................................... 55,200
Retained earnings................................................................................................. ?
Unearned revenues ............................................................................... 27,600
Vehicles ................................................................................................. 81,600

Analysis Component:
1. What percentage of the assets is financed by debt?
2. What percentage of the assets is financed by equity?
3. Assuming that 37% of the company’s assets were financed by debt at March 31, 2013, has the balance sheet been strengthened over the current year?


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  • CreatedJanuary 08, 2015
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