Q2The following was the Balance sheet of A, B and C sharing profits andlosses in the proportion of 5:3:2LiabilitiesAmount (RO)CreditorsBills PayableGeneral ReservesCapital AccountsABсAssets60,000 Cash at Bank24,000 Stock30,000 Debtors120,000 Furniture105,000 Land and Buildings75,000414,000Amount (RO)45,00075,00090,00024,000180,000Stock is to be depreciated byLand and Buildings is to be appreciated by414,000They Admit D into Partnership giving him 1/5th share of profits on thefollowing terms:D brings in his capitalProvision is be made for outstanding expensesGoodwill already appears in the booksFurniture is to be written down by75,00063,00060,00012.50%7.50%15.0%Write the Necessary Journal Entries. Prepare Revaluation Account,Capital Accounts and Balance sheet of the firm as newly constituted.

Journal entries: The first step in accounting is a journal entry, which is used to record a business…

Answered: The following was the Balance sheet of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...

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Q2. From the following particulars, you are required to calculate: (1 (f) Debtor's Tumover Ratio (d) Debt Equity Ratio (e) Proprietary Ratio Particulars Rs Particulars Rs 9,10,000 2,00.000 12.40,000 74,40,000 Inventories 15.00.000 Bank Overdraft 7,44,000 Sundry Debtors 6,00,000 Sundry Creditors 16,50,000 Short-Term Investments 5.00.000 Cash Balances Annual Sales Paid up Capital Gross Profit Reserve & Surplus 12.00,000 1.60,000 Fixed Assets 7% Debentures 40,000
5. The followings ate the information about Rainbow National Bank:Report of Income Tk.Interest income 1,250Interest expense 500Total assets 40,000Securities losses or gains 1,000Earning assets 30,000Total liabilities 30,000Taxes paid 1,000Shares of common stock outstanding 3,000Noninterest income 8,000Noninterest expense 6,000Provision for loan losses 2,500Calculate ROE, ROA, Net interest margin, Earnings per share, Net noninterest marginand Net operating margin.Alternative Scenarios:Suppose interest income, interest expenses, noninterest income, and noninterestexpenses each decline by 5 percent while all other revenue and expense items shown inthe preceding table remain unchanged. What will be happen to Rainbow ROE, ROA,and earnings per share?
Exercise n°6. Consider this simplified balance sheet for Geomorph Trading: Current liabilities Long-term debt Other liabilities Equity Current assets $ 100 $ 60 Long-term assets 500 280 70 190 $ 600 $ 600 a. Calculate the ratio of debt to equity. (Round your answer to 2 decimal places.) b-1. What are Geomorph's net working capital and total long- term capital? b-2. Calculate the ratio of debt to total long-term capital. (Round your answer to 2 decimal places.) Exercise n°7. Magic Flutes has total receivables of $3,000, which represent 20 days' sales. Total assets are $75,000. The firm's operating profit margin is 5%. Assume a 365-day year. 3/4 a. What is the firm's sales-to-assets ratio? (Round your answer to 2 decimal places.) b. What is the firm's return on assets? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Exercise n°8. a. If a firm's assets of $10,000 represent 200 days' sales, what is its annual sales? Assume a 365-day…
Assume the following information is given:Income statementNet sales sh. 200,000Operating income 10,000 Balance sheetCurrent assets 95,000Total assets 150,000 Current liabilities 80,000Total liabilities 125,000Retained earnings 25,000 The market value of equity is sh. 300,000Required:Evaluate the credit worthiness of the borrower using Altman Z
Calculate the following for Co. XYZ: a. Current ratio b. Debt ratio Assets: Cash and marketable securities $400,000 Accounts receivable 1,415,000 Inventories 1,847,500 Prepaid expenses 24,000 Total current assets $3,686,500 Fixed assets 2,800,000 Less: accumulated depreciation 1,087,500 Net fixed assets $1,712,500 Total assets $5,399,000 Liabilities: Accounts payable $600,000 Notes payable 875,000 Accrued taxes Total current liabilities $1,567,000 Long-term debt 900,000 Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement: Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,375,000 Selling and administrative expense 1,000,500 Depreciation expense 135,000 Interest expense Earnings before taxes $765,000 Income taxes Net income Common stock dividends $230,000 Change in retained earnings
19. Ebasan Company have the following account balances: Cash (net of overdraft of P100,000) Accounts receivable Accounts payable Notes payable Loans payable Income tax payable Warranty obligations Deferred revenue Cumulative, redeemable preference shares at the option of the holder Non-cumulative, non-redeemable preference shares What is the total amount considered as financial liabilities? A. 4,620,000 B. 3,620,000 C. 4,600,000 D. 4,500,000 P300,0000 450,000 1,200,000 500,000 1,800,000 120,000 180,000 240,000 1,000,000 2,000,000
Using the data given below, compute for the total amount of items that meet the definition of financial asset Cash P 100,000 Investment in shares – FVTPL 500,000 Investment in associate 2,000,000 Accounts receivable 1,000,000 Inventories 800,000 Prepaid rent 50,000 Interest rate swap receivable 200,000 Investment in debt securities – FVTOCI 400,000 Investment in debt securities – AC 300,000 Land 2,000,000 Buildings 3,000,000 Machinery and equipment 1,500,000 Patents 250,000
A Madison Makeup reported the following on its most recent financial statements (in 2! 3 Miscellaneous financial information 4 Total liabilities 5 Marketable securities 6 Net working capital 7 Short-term debt 8 Total current liabilities b9 Total revenue B 10 Total stockholders' equity 11 Current portion of LT debt bl 12 Operating net working capital 13 Long-term debt (in LT liabilities) 14 m 15 What did Madison Makeup report as long-term assets? 16 Amount 298,916 0 360,058 27,135 129,494 358,570 1,187,584 18,285 224,100 128,901
Question # 02A, B and C were partners. They share profit and losses in the ratio of 2:1:2. Their balance sheet was as under:AssetsCash and Bank Accounts Receivable Merchandise InventoryFurniture and FixtureEquities33,000 Accounts Payable 29,000 Notes Payable 26,000 A’s Capital24,000 B’s Capital C’s Capital112,0004,000 8,000 40,00020,000 40,000 112,000The partner decided to dissolve the firm.Required:Given entries in general journal to record the dissolution of the firm considering the following transaction.a) Cash Rs. 25,000 was collected from debtors in full settlement.b) Cash Rs. 72,000 received from the sale of inventory and furniture and fixture.c) Paid off the liabilities in full.d) All the available balance of cash after considering the above transaction distributed among thepartners.
Q2. From the following particulars, you are required to calculate: (c) Stock Turnover Ratio (f) Debtor's Turnover Ratio (a) Current Ratio (b) Gross Profit Ratio (d) Debt Equity Ratio (e) Proprietary Ratio Rs Rs Particulars 74,40,000 Inventories 15.00,000 Bank Overdraft 7,44,000 Sundry Debtors 6,00,000 Sundry Creditors 16,50,000 Short-Term Investments 5,00.000 Cash Balances Particulars 9,10.000 2.00.000 12,40,000 Annual Sales Paid up Capital Gross Profit Reserve & Surplus 12.00,000 1.60,000 Fixed Assets 7% Debentures 40,000
Using balance sheet what is the quick ratio? BALANCE SHEET ($ in millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,166.50 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S EQUITY Property, Plant & Equip. - Net 4,591.40 Common Stock 828.50 Other Long Term Assets 120.90 Retained Earnings 5,401.70 Total Long-Term Assets 4,712.30 Total Shareholder's Equity 6,230.20 Total Assets 9,878.80 Total Liabilities & Equity 9,878.80
information to answer question 4. Cash R10 000 Accounts receivable(debtors control) R30 000 Inventory R80 000 Prepaid insurance R 6 000 Fixed assets R200 000 Accounts payable (creditors control) R30 000 Income received in advance R25 000 Wages payables R5 000 Long-term liabilities R70 000 Capital R196 000 Calculate the current ratio. A. 2:1 B. 1.0:1 C. 2.1:1 D. None of the above

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