Answer:
1) Prompt Submission of invoice
2) Removal of unnecessary assets
3) Bargain for a longer payment period
Explanation:
Current ratio measures the capability of a business or organisation to meet up to its short-term obligations that are due within a period of one year.
Conditions in which a company can increase its current ratio at the end of their accounting period include:
A) Prompt invoice submission:
Invoice should be submitted early to the customers. The more your accounts receivables increase and the quicker money is derived from your sales,the better your current ratio be and you will have much more money.
B) Removal of unnecessary assets:
All business has unproductive assets. Resources that are just lying there and wasting,resources that is not earning anything. It is advisable to dispose them off since they are not adding to your income.
C) Bargain for longer payment period:
Try and negotiate for a longer payment periods with your vendors and ask if you can be given discounts.
Answer:
The August 31 trial balance is a debit and credit amount of $16,986
Explanation:
The journal entries for the following transactions is as follows;
General Journal Debit Credit
1. Cash $6,500
Photography equipment $33,500
Common stock $40,000
2. Prepaid insurance $2,100
Cash $2,100
3. Office supplies $880
Cash $880
4. Cash $3,331
Photography fees $3,331
5. Utilities expense $675
Cash $675
August 31 trial balance $16,986 $16,986
The August 31 trial balance is a debit and credit amount of $16,986
Answer:
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
Cr Paid Capital $1,600
August 15
Dr Cash $78,000
Cr Common stock $50,000
Cr Paid in Capital $28,000
October 15
Dr Land $51,000
Cr Common stock $30,000
Cr Paid in Capital $21,000
Explanation:
Preparation of the journal entries to record the stock issuances on August 1, August 15, and October 15.
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
(800 shares*$10 par value)
Cr Paid Capital $1,600
($9,600-$8,000)
(To record stock issuances)
August 15
Dr Cash $78,000
Cr Common stock $50,000
(5,000shares*$10 par value)
Cr Paid in Capital $28,000
($78,000-$50,000)
(To record stock issuances)
October 15
Dr Land $51,000
Cr Common stock $30,000
(3,000shares*$10 par value)
Cr Paid in Capital $21,000
($51,000-$30,000)
(To record stock issuances)
Total Revenues
The price at which a firm sells one unit of its product is known as Selling Price.
A firm will sell a certain number of units during a given period – day, week, month, year etc.
When we multiply the Selling price and the quantity sold by a firm we get total revenues of a frim for a given period.
