Below is an alphabetical list of the adjusted accounts of Dunder Tour Company at its year end,
Question:
Below is an alphabetical list of the adjusted accounts of Dunder Tour Company at its year end, December 31, 2021. All accounts have normal balances.
Additional information:
1. In 2022, $3,000 of the notes payable becomes due.
2. The note receivable is due in 2023.
3. On July 18, 2021, Fred Dunder invested $3,200 cash in the business.
Instructions
a. Calculate the post-closing balance in F. Dunder, Capital on December 31, 2021.
b. Prepare a classifi ed balance sheet.
c. On December 31, 2020, Dunder Tour Company had current assets of $17,400 and current liabilities of $22,300. Calculate the company?s working capital and current ratio on December 31, 2020, and December 31, 2021.
d. On December 31, 2020, the total of Dunder Tour Company?s cash, short-term investments, and current receivables was $15,600. Calculate the company?s acid-test ratio on December 31, 2020, and December 31, 2021.
Has the company?s ability to pay its debts improved or weakened over the year?
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak