Selected financial information for JPC Enterprises as at December 31, 2021, follows: Additional information: 1. All accounts
Question:
Selected financial information for JPC Enterprises as at December 31, 2021, follows:
Additional information:
1. All accounts have normal balances.
2. $17,250 of the mortgage payable will be paid before December 31, 2022.
3. The notes payable are payable on May 17, 2022.
Instructions
a. Prepare a classified balance sheet.
b. Calculate working capital, the current ratio, and the acid-test ratio.
c. Comment on the company?s liquidity.
Accounts payable Accounts receivable Accumulated depreciation-building Building Cash Goodwill Interest payable J. Chrowder, capital Land Licences Long-term equity investments Mortgage payable Notes payable Prepaid expenses Salaries payable $105,600 $105,600 98,300 45,800 230,000 55,000 6,900 28,700 10,100 27,400 79,900 306,300 16,500 36,000 16,500 279,400 Supplies Unearned revenue
Step by Step Answer:
a b Working capital Current Assets Current Liabilities 230500 250450 19950 Current Ratio Current A...View the full 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
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
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