ĮThe following information applies to the questions displayed below.J On January 1, Year 1, the general ledger of a company includes the following account balances: Debit $ 25,600 47,200 Accounts Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land $ 4,700 20,500 51,000 17,500 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock 2,000 29,000 55,000 40,000 31,100 Retained Earnings Totals $161,800 $161,800 During January Year 1, the following transactions occur: Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year purchase date. January January 6 Purchase additional inventory on account, $152,000. January 15 The comapany sales for the first half of the month total $140,000. All of these sales are on account. The cost of the units sold is $76,300. January 23 Receive $125,900 from customers on accounts receivable. January 25 Pay $95,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,300. January 30 The comapany sales for the second half of the month total $148,000. Sales include $10,000 for cash and $138,000 on account. The cost of the units sold is $82,000. January 31 Pay cash for monthly salaries, $52,500.
ĮThe following information applies to the questions displayed below.J On January 1, Year 1, the general ledger of a company includes the following account balances: Debit $ 25,600 47,200 Accounts Credit Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land $ 4,700 20,500 51,000 17,500 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock 2,000 29,000 55,000 40,000 31,100 Retained Earnings Totals $161,800 $161,800 During January Year 1, the following transactions occur: Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year purchase date. January January 6 Purchase additional inventory on account, $152,000. January 15 The comapany sales for the first half of the month total $140,000. All of these sales are on account. The cost of the units sold is $76,300. January 23 Receive $125,900 from customers on accounts receivable. January 25 Pay $95,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as uncollectible, $5,300. January 30 The comapany sales for the second half of the month total $148,000. Sales include $10,000 for cash and $138,000 on account. The cost of the units sold is $82,000. January 31 Pay cash for monthly salaries, $52,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![ĮThe following information applies to the questions displayed below.]
On January 1, Year 1, the general ledger of a company includes the following account balances:
Accounts
Debit
Credit
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
$ 25,600
47,200
$ 4,700
Inventory
Land
20,500
51,000
17,500
Equipment
Accumulated Depreciation
Accounts Payable
Notes Payable (6%, due April 1, Year 2)
Common Stock
2,000
29,000
55,000
40,000
31,100
$161,800 $161,800
Retained Earnings
Totals
During January Year 1, the following transactions occur:
January 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the
purchase date.
January 6 Purchase additional inventory on account, $152,000.
January 15 The comapany sales for the first half of the month total $140,000. All of these sales are on
account. The cost of the units sold is $76,300.
January 23 Receive $125,900 from customers on accounts receivable.
January 25 Pay $95,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,300.
January 30 The comapany sales for the second half of the month total $148,000. Sales include $10,000 for cash
and $138,000 on account. The cost of the units sold is $82,000.
January 31 Pay cash for monthly salaries, $52,500.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0288c80-ea87-4509-a745-673b052c2a7e%2F6013a07e-f299-465a-94c4-6b0b8b39e26b%2Fujek0ad_processed.png&w=3840&q=75)
Transcribed Image Text:ĮThe following information applies to the questions displayed below.]
On January 1, Year 1, the general ledger of a company includes the following account balances:
Accounts
Debit
Credit
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
$ 25,600
47,200
$ 4,700
Inventory
Land
20,500
51,000
17,500
Equipment
Accumulated Depreciation
Accounts Payable
Notes Payable (6%, due April 1, Year 2)
Common Stock
2,000
29,000
55,000
40,000
31,100
$161,800 $161,800
Retained Earnings
Totals
During January Year 1, the following transactions occur:
January 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the
purchase date.
January 6 Purchase additional inventory on account, $152,000.
January 15 The comapany sales for the first half of the month total $140,000. All of these sales are on
account. The cost of the units sold is $76,300.
January 23 Receive $125,900 from customers on accounts receivable.
January 25 Pay $95,000 to inventory suppliers on accounts payable.
January 28 Write off accounts receivable as uncollectible, $5,300.
January 30 The comapany sales for the second half of the month total $148,000. Sales include $10,000 for cash
and $138,000 on account. The cost of the units sold is $82,000.
January 31 Pay cash for monthly salaries, $52,500.
Transcribed Image Text:b-1. Calculate the acid-test ratio at the end of January.
Acid-test Ratio
Choose Numerator
+ Choose Denominator
Acid-test Ratio
Acid-test Ratio
II
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education