You are an accounting assistant for Acme, Inc. Currently, your supervisor is out on medical leave...
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You are an accounting assistant for Acme, Inc. Currently, your supervisor is out on medical leave but the owner of the company comes to you with an issue. He is looking to obtain a line of credit with his bank. The accounting records consist of the just T-accounts, which were prepared by your supervisor. The accounts at December 31, 2021 are as follows: The owner tells you work was done for a customer right at year-end for which they have not received payment. The amount was $15,000 and has not been recorded. He also says he owes $1,000 in salaries which are not recorded. Cash 110,000 Accounts Payable 100,000 Revenue 100,000 Accounts Receivable 5,000 Salaries Payable 1,000 Interest Expense 5,000 Equipment 116,000 Long-Term Note Payable 50,000 Rent Expense 12,000 Accumulated Depreciation 10,000 Common Stock 25,000 Salaries Expense 2,000 Land 15,000 Dividends 50,000 Retained Earnings In order for Acme, Inc. to qualify for the line of credit, its current ratio must be 1.25 or higher. Do they qualify? 7,000 1. What is the adjusted balance of Salaries Payable? 2. What is the adjusted balance of Salaries Expense? 3. What is the adjusted balance of Accounts Receivable? 4. What is the adjusted balance of revenue? 5. What is the total assets after adjustments? 6. What is the total amount of liabilities after adjustments? 7. What is the amount of total stockholder's equity after adjustments? 8. What is the amount of total current assets after the adjustments? 9. What is the amount of current liabilities after adjustments? 10.Does Acme's current ratio qualify for the line of credit? You are an accounting assistant for Acme, Inc. Currently, your supervisor is out on medical leave but the owner of the company comes to you with an issue. He is looking to obtain a line of credit with his bank. The accounting records consist of the just T-accounts, which were prepared by your supervisor. The accounts at December 31, 2021 are as follows: The owner tells you work was done for a customer right at year-end for which they have not received payment. The amount was $15,000 and has not been recorded. He also says he owes $1,000 in salaries which are not recorded. Cash 110,000 Accounts Payable 100,000 Revenue 100,000 Accounts Receivable 5,000 Salaries Payable 1,000 Interest Expense 5,000 Equipment 116,000 Long-Term Note Payable 50,000 Rent Expense 12,000 Accumulated Depreciation 10,000 Common Stock 25,000 Salaries Expense 2,000 Land 15,000 Dividends 50,000 Retained Earnings In order for Acme, Inc. to qualify for the line of credit, its current ratio must be 1.25 or higher. Do they qualify? 7,000 1. What is the adjusted balance of Salaries Payable? 2. What is the adjusted balance of Salaries Expense? 3. What is the adjusted balance of Accounts Receivable? 4. What is the adjusted balance of revenue? 5. What is the total assets after adjustments? 6. What is the total amount of liabilities after adjustments? 7. What is the amount of total stockholder's equity after adjustments? 8. What is the amount of total current assets after the adjustments? 9. What is the amount of current liabilities after adjustments? 10.Does Acme's current ratio qualify for the line of credit?
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Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
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