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Balanced Books Bookkeeping

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Question;Balanced Books Bookkeeping Jessica;and David are student interns at Balanced Books Bookkeeping. They have taken;several business math and accounting 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;Cash $ 4,000;Depreciation 2,000;Carlton, equity 34,500;Cost of goods sold 85,000;Rent expense 15,000;Wages payable 1,500;Utilities 6,500;Miscellaneous expenses 1,500;Account title Amount;Accounts payable $ 3,500;Merchandise inventory 15,000;Accounts receivable 6,000;Net sales 120,000;Insurance payable 500;Equipment 15,000;Wages 8,000

 

Paper#53096 | Written in 18-Jul-2015

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