Several accounts that appeared on Kruse's 2012 balance sheet are as follows: Accounts Payable........................$ 55,000 Equipment................................$950,000 Marketable
Question:
Several accounts that appeared on Kruse's 2012 balance sheet are as follows:
Accounts Payable........................$ 55,000
Equipment................................$950,000
Marketable Securities......................40,000
Taxes Payable...............................15,000
Accounts Receivable.....................180,000
Retained Earnings........................250,000
Notes Payable, 12%, due in 60 days.....20,000
Inventory....................................85,000
Capital Stock............................1,150,000
Allowance for Doubtful Accounts.......20,000
Salaries Payable.............................10,000
Land.........................................600,000
Cash..........................................15,000
Required
1. Prepare the Current Liabilities section of Kruse's 2012 balance sheet.
2. Compute Kruse's working capital.
3. Compute Kruse's current ratio. What does this ratio indicate about Kruse's condition?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 Current liabilities Accounts payable Notes payable 12 due ...View the full answer
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
