FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 2, Problem 5PSB
Problem 2-5B Computing net income from equity analysis, preparing a
The accounting records of Tama Co. show the following assets and liabilities as of December 31. 2018 and 2019.
Required
- Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.
- Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 2019, the owner invested $5,000 additional cash in the business and withdrew $3,000 cash for personal use. Check (2) Net income, $11,000
- Compute the December 31, 2019, debt ratio (in percent and rounded to one decimal). (3) Debt ratio, 63.6%
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Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020.
RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500
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Chapter 2 Solutions
FUND.ACCT.PRIN.
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