The following items are taken from the financial statements of Maroon Company for 2020: Accounts payable $
Question:
The following items are taken from the financial statements of Maroon Company for 2020:
Accounts payable
$ 10,000
Accounts receivable
11,000
Accumulated depreciation—equipment
38,000
Advertising expense
21,000
Cash
14,000
Common stock
90,000
Depreciation expense
12,000
Dividends
15,000
Equipment
210,000
Insurance expense
3,000
Notes payable (due 2023)
70,000
Prepaid insurance
6,000
Rent expense
17,000
Retained earnings (beginning)
12,000
Salaries and wages expense
34,000
Salaries and wages payable
3,000
Service revenue
130,000
Supplies
4,000
Supplies expense
6,000
Required
A.Prepare in good form an Income statement
B.Prepare in good form a Statement of retained earnings
C.Prepare a Classified balance sheet for Maroon Company at December 31, 2020, assuming the note payable is a long-term liability
D.Compute the current ratio, debt to assets ratio, and earnings per share value. The average number of shares outstanding for 2020 was 10,000
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille