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Jessica and David are student interns at Balanced BooksBookkeeping. T




Question;Jessica and;David are student interns at Balanced BooksBookkeeping. They have taken several;business math andaccounting classes and are now applying what they have learned;to real-life situations. They enjoy their internship, but they are sometimes;surprised by the assignments they are given. Luckily, they work together, so;they share the assignments and learn from each other. Their most recent;assignment is to take a listing of accounts provided by one of Balanced Books?;clients and turn them into a balance sheet and income statement. David suggests;that their client might appreciate it if they also performed a vertical;analysis of each statement. Jessica suggests that they should also compute the;current ratio and the acid-test ratio.;1. Create;the financial statements for December 31, 2011, depict them in vertical format;and compute the current and acid test ratios.;Account;title Amount Account title Amount;Cash $4,000;Accounts payable $3,500;Depreciation;2,000 Merchandise inventory 15,000;Carlton;equity 34,500 Accounts receivable 6,000;Cost of;goods sold 85,000 Net sales 120,000;Rent expense;15,000 Insurance payable 500;Wages;payable 1,500 Equipment 15,000;Utilities;6,500 Wages 8,000;Miscellaneous;expenses 1,500


Paper#44480 | Written in 18-Jul-2015

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