Question

The following items are taken from the financial statements of PQR Company for 2012:

Cash

$250,000

Accounts Receivable

150,000

Prepaid Rent

120,000

Accounts Payable

168,000

Unearned Service Revenue

25,000

Equipment, net of accumulated depreciation

333,000

Common Stock

250,000

Retained Earnings 12/31/2011

41,000

Long-term debt

300,000

Service revenue

165,000

Cost of Goods Sold

50,000

Rent expense

24,000

Supplies expense

10,000

Insurance expense

12,000

Instructions:

(a) Please create a classified Balance Sheet in good form for the year ended 2012. (25 points)

(b) Please calculate the current ratio.

Cash

$250,000

Accounts Receivable

150,000

Prepaid Rent

120,000

Accounts Payable

168,000

Unearned Service Revenue

25,000

Equipment, net of accumulated depreciation

333,000

Common Stock

250,000

Retained Earnings 12/31/2011

41,000

Long-term debt

300,000

Service revenue

165,000

Cost of Goods Sold

50,000

Rent expense

24,000

Supplies expense

10,000

Insurance expense

12,000

 

 

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!