Problem $11-16(Algo)$ Effect $of$ transactions $on$ liquidity measures $LO11-1$

Required:

$a.$ Calculate the working capital, current ratio, and acid$-$test ratio for Tibbetts Company $asof$ September $30,2022.$

$b.$ Summarized here are the transaction$\frac{s}{e}$vents that took place during the fiscal year ended September $30,2023.$ Prepare journal

entries for the below transactions and indicate the effect $of$ each item $on$ Tibbetts Company's working capital, current ratio, and

acid$-$test ratio. Use $+$ for increase, $-$ for decrease, and $(NE)$ for $no$ effect.

Credit sales for the year amounted $to$ $$336,000.$ The cost $of$ goods sold was $$218,400.$

Collected accounts receivable, $$352,800.$

Purchased inventory $on$ account, $$235,200.$

Issued $700$ shares $of$ common stock for $$25$ per share.

Wrote off $$9,800of$ uncollectible accounts using the allowance for bad debts.

Declared and paid a cash dividend, $$28,000.$

Sold marketable $securities$ costing $$36,400$ for $$43,400in$ cash.

Recorded insurance expense for the year, $$16,800.$ The premium for the policy was paid $in$ June $2022.$

Borrowed cash $on$ a short$-$term bank loan, $$14,000.$

Repaid principal $of$ $$56,000$ and interest $of$ $$4,200on$ a long$-$term bank loan.

Complete this question $by$ entering your answers $in$ the $tabs$ below.

Required $A$

Calculate the working capital, current ratio, and acid$-$test ratio for Tibbetts Company $asof$ September $30,2022.$

Note: Round "Ratio" answers $to2$ decimal places.

$a.$ Calculate the working capital, current ratio, and acid$-$test ratio for Tibbetts Company $asof$ September $30,2022$

$b.$ Summarized here are the transaction$\frac{s}{e}$vents that took place during the fiscal year ended September $30,2023.$ Prepare journal

entries for the below transactions and indicate the effect $of$ each item $on$ Tibbetts Company's working capital, current ratio, and

acid$-$test ratio. Use $+$ for increase, $-$ for decrease, and $(NE)$ for $no$ effect.

Credit sales for the year amounted $to$ $$336,000.$ The cost $of$ goods sold was $$218,400.$

$2$ Collected accounts receivable, $$352,800.$

Purchased inventory $on$ account, $$235,200.$

Issued $700$ shares $of$ common stock for $$25$ per share.

Wrote off $$9,800of$ uncollectible accounts using the allowance for bad debts.

Declared and paid a cash dividend, $$28,000.$

Sold marketable $securities$ costing $$36,400$ for $$43,400in$ cash.

Recorded insurance expense for the year, $$16,800.$ The premium for the policy was paid $in$ June $2022$

Borrowed cash $on$ a short$-$term bank loan, $$14,000.$

Repaid principal $of$ $$56,000$ and interest $of$ $$4,200on$ a long$-$term bank loan.

Complete this question $by$ entering your answers $in$ the $tabs$ below.

Required A Required $B1$ Required $B2$

Summarized here are the transaction$\frac{s}{e}$vents that took place during the fiscal year ended September $30,2023.$ Prepare journal entries

for the below transactions.

Note: $Ifno$ entry $is$ required for a transactio$\frac{n}{e}$vent, select $"No$ journal entry required" $in$ the first account field.

Credit sales for the year amounted $to$ $$336,000.$ The cost $of$ goods sold was $$218,400.$

Collected accounts receivable, $$352,800.$

Purchased inventory $on$ account, $$235,200.$

Issued $700$ shares $of$ common stock for $$25$ per share.

Wrote off $$9,800of$ uncollectible accounts using the allowance for bad debts.

Declared and paid a cash dividend, $$28,000.$

Sold marketable $securities$ costing $$36,400$ for $$43,400in$ cash.

Recorded insurance expense for the year, $$16,800.$ The premium for the policy was paid $in$ June $2022.$

Borrowed cash $on$ a short$-$term bank loan, $$14,000.$

Repaid principal $of$ $$56,000$ and interest $of$ $$4,200on$ a long$-$term bank loan.

Journal entry worksheet

Note: Enter debits before credits.