$200$

Accounting Basics Chapter $8$: Comprehensive Exercise

To complete the comprehensive problem for the first month of operations, perform the following:

Record journal entries for each of the transactions of Mother Molly's Childcare during its first month of operations.

Post all journal entries to T$-$Accounts for each account used by Mother Molly's Childcare.

Prepare the Unadjusted Trial Balance.

Record adjusting journal entries based on the following information:

a$.$ A physical count of supplies on May $31$ indicates that supplies worth $$625$ remain in the supply cabin

b$.$ $$750$ of the unearned revenue received on May $22$ has been earned as of May $31.$

c$.$ As of May $31,$ the company has provided $$850$ of services for which it has not yet billed the client, and which were not previously recorded.

d$.$ As of May $31,$ employees of Mother Molly's Childcare have worked for one day, and earned wages of $$200.$ They will not receive paychecks for this work until the following month.

Prepare the Adjusted Trial Balance.

Prepare the Income Statement.

Prepare the Statement of Owner's Equity.

Prepare the Balance Sheet.

Record the closing entries.

Prepare the Post$-$Closing Trial Balance.

Prepare a vertical analysis for both the Income Statement and the Balance Sheet.

Calculate the Current Ratio and the Quick Ratio $($Liquidity Ratios$).$

Calculate the Debt Ratio, Equity Ratio, and the Debt$-$to$-$Equity Ratio $($Solvency Ratios$).$

Calculate the Profit Margin and the Return on Assets $($Profitability Ratios$).$