Presented below is the adjusted trial balance of Taylor Investment Advisers as at 30 June 2021....

 

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Presented below is the adjusted trial balance of Taylor Investment Advisers as at 30 June 2021. Taylor Investment Advisers Trial Balance As at 30 June 2021 Debit S Credit $ Cash at Bank 32,000 Accounts Receivable 6,500 Office Supplies 1,500 Prepaid Rent 5,000 Equipment 145,000 Accumulated Depreciation - Equipment 1,250 Accounts Payable 20,500 Salary Payable 2,250 Interest Payable 250 Revenue received in advance 4,000 Bank loan (5 Years) 100,000 Taylor's, Capital Taylor's, Drawings 30,000 2,500 Service Revenue 44,000 Rent Expense 3,500 Salary Expense 4,500 Supplies Expense Depreciation Expense - Equipment 250 1,250 Interest Expense 250 202,250 202,250 Required: a) Prepare Taylor Investment Advisers Income Statement for the year ended 30 June 2021. (8 Marks) b) Prepare Taylor Investment Advisers Statement of Changes in Equity for the year ended 30 June 2021. (4 Marks) c) Calculate Taylor Investment Advisers Profit Margin and Return on Assets ratios (the total assets at 30 June 2020 was $177,500) (Round off the answers to the nearest 2 decimal places). (2 Marks) d) ) Calculate Taylor Investment Advisers Current ratio and the Debt-to-total assets ratio at 30 June 2021. (Round off the answers to the nearest 2 decimal places). (2 Marks) (ii) Discuss Taylor Investment Advisers liquidity and solvency positions at 30 June 2021 as compared to 2020 (the Current ratio was 1.92:1 and the Debt-to-total assets ratio was 51.8% at 30 June 2020). Presented below is the adjusted trial balance of Taylor Investment Advisers as at 30 June 2021. Taylor Investment Advisers Trial Balance As at 30 June 2021 Debit S Credit $ Cash at Bank 32,000 Accounts Receivable 6,500 Office Supplies 1,500 Prepaid Rent 5,000 Equipment 145,000 Accumulated Depreciation - Equipment 1,250 Accounts Payable 20,500 Salary Payable 2,250 Interest Payable 250 Revenue received in advance 4,000 Bank loan (5 Years) 100,000 Taylor's, Capital Taylor's, Drawings 30,000 2,500 Service Revenue 44,000 Rent Expense 3,500 Salary Expense 4,500 Supplies Expense Depreciation Expense - Equipment 250 1,250 Interest Expense 250 202,250 202,250 Required: a) Prepare Taylor Investment Advisers Income Statement for the year ended 30 June 2021. (8 Marks) b) Prepare Taylor Investment Advisers Statement of Changes in Equity for the year ended 30 June 2021. (4 Marks) c) Calculate Taylor Investment Advisers Profit Margin and Return on Assets ratios (the total assets at 30 June 2020 was $177,500) (Round off the answers to the nearest 2 decimal places). (2 Marks) d) ) Calculate Taylor Investment Advisers Current ratio and the Debt-to-total assets ratio at 30 June 2021. (Round off the answers to the nearest 2 decimal places). (2 Marks) (ii) Discuss Taylor Investment Advisers liquidity and solvency positions at 30 June 2021 as compared to 2020 (the Current ratio was 1.92:1 and the Debt-to-total assets ratio was 51.8% at 30 June 2020).

Answer rating: 100% (QA)

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