Use the following items taken from the financial statements of the Postal Service for the year ending
Question:
Use the following items taken from the financial statements of the Postal Service for the year ending December 31, 2019 to answer questions 5:
Accounts payable ........................................................$10,000
Accounts receivable ......................................................11,000
Accumulated depreciation – equipment ....................28,000
Advertising expense ......................................................21,000
Cash ................................................................................14,000
Owner’s capital (12/31/19) .........................................105,000
Owner’s drawings .........................................................14,000
Depreciation expense ..................................................12,000
Insurance expense ..........................................................3,000
Note payable, due 6/30/20 .............................................5,000
Prepaid insurance (6 - month policy).............................6,000
Rent expense .................................................................17,000
Salaries and wages expense ........................................32,000
Service revenue ...........................................................125,000
Supplies (Inventory).........................................................4,000
Supplies expense ............................................................6,000
Equipment (Long-term) ............................................ 210,000
What is the Working Capital of the Postal Service at December 31, 2019?
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield