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3 years ago

Use the following data to calculate the current ratio.

Business

1 answer:

White raven [17]3 years ago

6 0

Answer:

Kingbird, Inc.

Current Ratio = Current Assets/Current Liabilities

= $406,000/$147,800

= 2.75

Explanation:

a) Data and Calculations:

Kingbird, Inc. Balance Sheet December 31, 2022

Cash and cash equivalents $68000 Accounts payable $135500

Accounts receivable 103500 Salaries & wages payable 12300

Inventory 144500 Bonds payable 166000

Prepaid insurance 90000 Total liabilities $313800

Stock investments 181500

Land 195000

Buildings $225000 Common stock $239200

Less: Accumulated

depreciation (64000) 161000 Retained earnings 502500

Trademarks 112000 Total stockholders' equity $741700

Total assets $1055500 Total liabilities and stockholders'

equity $1055500

Current Assets:

Cash and cash equivalents $68,000

Accounts receivable 103,500

Inventory 144,500

Prepaid insurance 90,000

Total current assets $406,000

Current Liabilities:

Accounts payable $135,500

Salaries & wages payable 12,300

Total current liabilities $147,800

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Answer:

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Explanation:

b.) Noncollectable amount = $5300 * 35% = 1855

Entry: Dr bad debts expense 1855

Cr Allowance for bad debts 1855

(To record bad debts expense).

5300-1855= 3445 * 3% = $103 will not be collected.

Entry: Dr Bad debts expense 103

Cr Allowance for bad debts 103

( To record bad debts expense)

d.) Entry:

Dr Income tax expense 13600

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Ledgers :

Bad debt expense = 1855+103 = 1958

Allowance for bad debts = 1855+103 = 1958

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income tax payable = 13600.

Trial balance:

_Dr__________________________________________________Cr____

Bad debt expense 1958 ----- 1958 Allowance for bad debts

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Total = 15558 ------- Total = 15558

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4 years ago

Caramel Corporation has 5,000 shares of stock outstanding.

Jet001 [13]

<u>Answer and Explanation:</u>

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Given : caramel Corportaion has E&P of around $300,000.

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3 years ago

Accrued Vacation Pay A business provides its employees with varying amounts of vacation per year, depending on the length of emp

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Answer:

On Jan 31

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Explanation:

The journal entry is as follows

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To vacation payable $8,900

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= Estimated amount of the current year's vacation pay ÷ total number of months in a year

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4 years ago

Regarding the Production Possibilities Curve, a decrease in the unemployment rate will most likely

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Option B;

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3 years ago

A jury must decide whether a defendant, already judged should receive the death penalty. They are told that the defendant commit

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Answer:

d.mitigating

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