Constructing Balance Sheets and Applying the Current and Quick Ratios

The following balance sheet data are reported for Brownlee Catering at September $30.$

Accounts Receivable $$8,500$ Accounts Payable $$11,000$

Notes Payable $7,000$ Cash $5,000$

Equipment $17,000$ Common Stock $13,750$

Supplies Inventory $4,500$ Retained Earnings $?$

Assume that on October $1,$ only the following two transactions occurred:

October $1$ Purchased additional equipment costing $$11,000,$ giving $$3,000$ cash and signing an $$8,000$ note payable.

Declared and paid a cash dividend of $$3,000.$

Required

a$.$ Prepare Brownlee Catering$$s balance sheet at September $30.$

b$.$ Prepare the company$$s balance sheet at the close of business on October $1.$

BROWNLEE CATERING SERVICE

BALANCE SHEETS

September $30$

October $1$

Assets

Answer $1$

Cash

Answer $2$

$0$

Answer $3$

$0$

Accounts Receivable Answer $4$

$0$

Answer $5$

$0$

Supplies Inventory Answer $6$

$0$

Answer $7$

$0$

Answer $8$

Equipment

Answer $9$

$0$

Answer $10$

$0$

Total Assets Answer $11$

$0$

Answer $12$

$0$

Liabilities

Answer $13$

Accounts Payable

Answer $14$

$0$

Answer $15$

$0$

Notes Payable Answer $16$

$0$

Answer $17$

$0$

Total Liabilities Answer $18$

$0$

Answer $19$

$0$

Stockholders' Equity

Answer $20$

Common Stock

Answer $21$

$0$

Answer $22$

$0$

Retained Earnings Answer $23$

$0$

Answer $24$

$0$

Total Stockholders Equity Answer $25$

$0$

Answer $26$

$0$

Total Liabilities and Stockholders' Equity Answer $27$

$0$

Answer $28$

$0$

c$.$ Calculate Brownlee$$s current and quick ratios on September $30$ and October $1.($Assume that Notes Payable are noncurrent.$)($Round answers to one decimal point.$)$

September $30$ October $1$

Current Ratio Answer $29$

$0$

Answer $30$

$0$

Quick Ratio Answer $31$

$0$

Answer $32$

$0$