On a separate sheet, show the $\mathrm{}$ Financial Statements$$$$$$ What is the Liability to Equity Ratio. Please form an opinion as to what this tells us about the health of this business.

 

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(a) Date Cash Accounts Supplies Delivery Van Receivable Accounts Notes Payable Payable May 1 Harry invested $10,000 in cash into the business. 2 Purchased a used van for deliveries of vaccums for $12,000. Cash of $2,000 was paid with the remaining amount on a signed note. 3 Paid $500 for office rent for the month. 5 Performed $4,400 of repair services on account. 9 Withdrew $200 cash for personal use. 12 Purchased supplies for $150 on account. 15 Received a cash payment $1,250 for the services which were performed on May 5. Harry Burns, Reason for Changes Capital in Capital 17 Purchased gasoline for $100 on account. 20 Received a cash payment of $1,500 for services performed today. 23 Made a cash payment of $500 on the Note Payable. 26 Paid $250 for utilities used this month. 29 Paid for the gasoline purchased on account on May 17. 30 Paid $1,000 to employees for salaries for this month. (b) On a separate sheet, show the 3 Financial Statements (c) What is the Liability to Equity Ratio. Please form an opinion as to what this tells us about the health of this business. (a) Date Cash Accounts Supplies Delivery Van Receivable Accounts Notes Payable Payable May 1 Harry invested $10,000 in cash into the business. 2 Purchased a used van for deliveries of vaccums for $12,000. Cash of $2,000 was paid with the remaining amount on a signed note. 3 Paid $500 for office rent for the month. 5 Performed $4,400 of repair services on account. 9 Withdrew $200 cash for personal use. 12 Purchased supplies for $150 on account. 15 Received a cash payment $1,250 for the services which were performed on May 5. Harry Burns, Reason for Changes Capital in Capital 17 Purchased gasoline for $100 on account. 20 Received a cash payment of $1,500 for services performed today. 23 Made a cash payment of $500 on the Note Payable. 26 Paid $250 for utilities used this month. 29 Paid for the gasoline purchased on account on May 17. 30 Paid $1,000 to employees for salaries for this month. (b) On a separate sheet, show the 3 Financial Statements (c) What is the Liability to Equity Ratio. Please form an opinion as to what this tells us about the health of this business.

Answer rating: 100% (QA)

CALCULATIONS Revenues Repair services performed on account4400 Cash payment received May 151250 Cash payment received May 201500 Total Revenues7150 Expenses Office rent May 3500 Office rent expense pa... View the full answer