Exercise 4-3 (Algo) Preparing adjusting entries from a work sheet LO P1 Use the following information from the Adjustments columns of a 10-column work sheet. Accumulated depreciation-office equipment Number Account Title 109 Interest receivable 124 Office supplies 128 Prepaid insurance 164 209 Salaries payable 409 Interest revenue 612 620 office salaries expense 637 650 Depreciation expense-Office equipment Insurance expense Office supplies expense Totals Prepare the necessary adjusting journal entries (a) through (e). View transaction list Journal entry worksheet 1 2 3 4 5 Adjustments Unadjusted Trial Balance Debit Credit Debit (d) $ 692 (c) 3,300 (e) 772 (a) 1,065 Credit (b) $ 1,815 (a) 1,065 (c) 3,300 (e) 772 (d) 692 Adjusted Trial Balance Debit Credit (b) 1,815 $ 7,644 $ 7,644 < Previ 2 of 8 Next > View transaction list 1 Record insurance expense for office equipment and store 2 equipment. Record office supplies expense. 3 Record the depreciation of office equipment. 4 Record the accrual of interest income. 5 Record the accrual of office salaries expense. Note: = journal entry has been entered Cash Short-term investments Current receivables Inventory Camaro $ 2,200 0 230 GTO $ 200 Torino $ 1,200 0 400 480 2,100 Prepaid expenses 300 Total current assets $ 4,830 $ 3,240 1,960 600 800 2,900 900 $ 6,200 Current liabilities $ 2,160 $ 1,290 $ 3,400 a. Compute the acid-test ratio for each of the separate cases above. b. Which company is in the best position to meet short-term obligations? Complete this question by entering your answers in the tabs below. 25 Required A Required B Compute the acid-test ratio for each of the separate cases above. Camaro GTO Torino Choose Numerator: Acid-Test Ratio Choose Denominator: Acid-Test Ratio = Acid-test ratio / = to 1 = to 1 1 = to 1 Required A Required B