1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MatroZZZ [7]
3 years ago
15

The adjusted trial balance for Martell Bowling Alley at December 31, 2017, contains the following accounts:

Business
1 answer:
Virty [35]3 years ago
6 0

Answer:

Martell Bowling Alley

Martell Bowling Alley

Balance Sheet

As of December 31, 2017

Assets

Current assets:

Cash                                      $18,040

Accounts receivable              14,520  

Prepaid insurance                   4,680                   $37,240

Equipment                            62,400

Accumulated depreciation    18,720   $43,680

Buildings                             128,800

Accumulated depreciation 42,600      86,200

Land                                                       67,000  196,880

Total Assets                                                      $234,120

Liabilities and Equity

Current liabilities:    

Accounts payable                                12,300

Interest payable                                    2,600

Notes payable (short-term)               22,000 $36,900

Notes payable (long-term)                                75,780

Total liabilities                                                 $112,680

Common stock                                 90,000

Retained earnings                             31,440  $121,440

Total liabilities and equity                             $234,120

2. The current assets exceed the current liabilities by $340.

3. The percentage of current assets in cash is 48.44%.

4. The company's liquidity = 48.89%

Explanation:

a) Data and Calculations:

Adjusted Trial Balance

As of December 31, 2017

                                                Debit         Credit

Cash                                        18,040

Accounts receivable              14,520  

Prepaid insurance                   4,680

Equipment                            62,400

Accumulated depreciation - equipment $18,720

Buildings                             128,800

Accumulated depreciation - buildings    42,600

Land                                     67,000

Accounts payable                                     12,300

Interest payable                                         2,600

Notes payable                                          97,780

Common stock                                        90,000

Retained earnings                                   25,000

Service revenue                                        17,180

Insurance expense                  780

Depreciation expense          7,360

Interest expense                  2,600

                                        $306,180    $306,180

Notes payable $ 97,780

Short-term notes payable $22,000

Long-term notes payable $75,780 (97,780 - 22,000)

Service revenue                                    $17,180

Insurance expense                  780

Depreciation expense          7,360

Interest expense                  2,600       10,740

Net income                                           $6,440

Retained earnings, beginning  $25,000

Net income                                     6,440

Retained earnings, ending        $31,440

2. Current assets = $37,240

Current liabilities =  36,900

Working capital =        $340

Cash = $18,040

Current assets = $37,240

Percentage of cash in current assets = $18,040/$37,240 * 100 = 48.44%

Liquidity = Cash/Current liabilities = $18,040/$36,900 * 100 = 48.89%

You might be interested in
What do you call an agreement made between different companies to charge the same amount for products?
aliya0001 [1]
The agreement made between different companies to charge the same amount for products or to not sell the products below a fixed price is known as <u>price-fixing.</u><u />

5 0
3 years ago
Read 2 more answers
Chris wants to open a family-oriented restaurant in a thriving suburban area. Chris thinks a sports-based theme and broad menu w
ella [17]

Answer:

The correct answer is letter "C": competitive barrier.

Explanation:

Competitive barriers represent obstacles for a business to start operations based on what other companies are already providing to the market. The settled companies -competitors- tend to have a preference and market share obtained through years of operations which is a threat for a new company that is looking for attracting consumers.

6 0
3 years ago
Suppose Ginger deposits $5,000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a T-account for
Nutka1998 [239]

Answer:

1) Suppose Ginger deposits $5,000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a T-account for the Bank of Skidoo.

Reserves                                                  Checkable deposits

debit             credit                                  debit             credit  

5,000                                                                             5,000

2) The Bank of Skidoo has no excess reserves and is subject to a 6 percent required reserve ratio. Assume the Bank of Skidoo makes the maximum loan possible from Ginger's deposit to Thurston. Show this transaction in a new T-account for the Bank of Skidoo.

Reserves                                                  Loans

debit             credit                                  debit             credit  

5,000                                                       4,700

<u>                      4,700</u>                            

300

3) Thurston decides to use the money he borrowed to purchase a sail boat. He writes a check for the entire loan amount to Gilligan's Seagoing Vessels, which deposits the check in its bank, the Paradise Bank of Kona, Hawaii. When the check clears, the Bank of Skidoo transfers the funds to the Paradise Bank. Show these transactions in a new T-account for the Bank of Skidoo.

Reserves                                                  Checkable deposits

debit             credit                                  debit             credit  

5,000                                                                             5,000

                     4,700                                  <u>4,700                      </u>

300                                                                                 300

<u>                      4,700 </u>

                     4,400

4) The maximum amounts of deposits that can be created from Ginger's initial deposit is $_____

Increase in checkable deposits = change in bank reserves / required reserves = $5,000 / 6% = $83,333.33

The maximum amounts of loans that can be created from Ginger's initial deposit is $_____

the maximum amount of loans that can be created in Ginger's bank is $4,700, but the maximum amount that loans can be created in the whole banking system = $83,333.33 - $5,000 = $78,333.33

3 0
3 years ago
Granite works maintains a debt-equity ratio of .65 and has a tax rate of 21 percent. the pretax cost of debt is 9.8 percent. the
siniylev [52]
<span>9.20 percent

Re= 0.036 +1.2(0.085) = 0.138
Re= [($1.10 x 1.02)$19] +.02 = 0.0790526

ReAverage = (0.138 + 0.0790526)/2 = 0.108526

WACC = (1/1.65)(0.108526) + (0.65/1.65)(0.098)(1-0.32) = 9.20 percent</span>
4 0
3 years ago
Instead of treating mobile commerce and traditional retailing as separate retail channels, the National Retail Federation recomm
Hitman42 [59]

Answer:

Omni-channel

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the integrated strategy being described within the question is called Omni-channel retailing. This is a strategy that emphasizes simultaneous communication between different communication channels and their supporting resources in order to provide a better user experience.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Other questions:
  • An owner withdrawal of $20,000 would_______.
    13·1 answer
  • What should you do before giving contact information for your references to a potential employer? A. Notify references and get t
    15·2 answers
  • Cutoff tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent ye
    14·1 answer
  • On june 1, 2017, james places in service a new automobile that cost $40,000. the car is used 60% for business and 40% for person
    9·2 answers
  • You submit an offer to the seller. They agree with price, inclusions, everything except the closing date. The proper way to hand
    6·1 answer
  • In the context of strategic human resources management, people can increase _____ by helping lower costs, providing something un
    15·1 answer
  • Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra
    8·1 answer
  • I need help no rush.
    8·2 answers
  • QUESTION 6 of 10: Ashleigh hires a group of security staff. Each worker works an average of 80 hours per month at $14/hour. If h
    6·1 answer
  • Roddy Rich is a very astute entrepreneur and wants to invest in an asset that will require high maintenance with disregard for s
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!