The adjusted trial balance of Belmore Ltd as at 30 June 2020 is given below. Belmore made a Loss of $1500 for the year. 

 

Required: 

a). Prepare Belmore Ltd's Statement of Changes in Equity for the year ended 30 June 2020. 

b). Prepare Belmore Ltd's Statement of financial position at 30 June 2020. 

c). 

(i). Calculate Belmore Ltd's Current ratio and the Debt-to-total assets ratio at 30 June 2020. (Round off the answers to the nearest 2 decimal places) 

(ii). Explain your Current ratio and how it reflects on the company's ability to meet its obligations.  

d).       

(i). The profit margin for Belmore Ltd for 2019 and 2020 were 18% and 15% respectively. Interpret the meaning of profit margin for 2020. 

(ii). Comment on the profitability trends of Belmore Ltd from 2019 to 2020. rn

Transcribed Image Text:

Belmore Ltd Adjusted trial balance 30 June 2020 Debit S Credit $ Cash at Bank 6400 Accounts Receivable 2200 Office Supplies 1800 Office Equipment 15 000 Accumulated Depreciation - Office equipment 4000 Accounts Payable 4000 Unearned Revenue 5000 Share Capital 12 000 Retained Earnings 4400 Dividends Paid 2500 Service Revenue 3500 Office Supplies Expense 600 Depreciation Expense - Equipment 2500 Rent Expense 1900 32 900 32 900 Belmore Ltd Adjusted trial balance 30 June 2020 Debit S Credit $ Cash at Bank 6400 Accounts Receivable 2200 Office Supplies 1800 Office Equipment 15 000 Accumulated Depreciation - Office equipment 4000 Accounts Payable 4000 Unearned Revenue 5000 Share Capital 12 000 Retained Earnings 4400 Dividends Paid 2500 Service Revenue 3500 Office Supplies Expense 600 Depreciation Expense - Equipment 2500 Rent Expense 1900 32 900 32 900

Answer rating: 100% (QA)

Answer Belmore Ltd Statement of Changes in Equity 30062020 Opening Balance ... View the full answer