Case Study 21-2, p. 769
Create Microsoft Excel worksheet and format it to answer your questions.
Note. Show all work and calculations. (The use of Microsoft® Excel® software is required.)
Quantitative Reasoning for Business > Business Math, Ch. 21
21.2 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 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.© BrainMass Inc. brainmass.com October 16, 2018, 11:01 pm ad1c9bdddf
Quantitative reasoning for business and business math calculations are examined.
Preparing Journal Entries of Debits and Credits
What are the debits and credit accounts for each transaction.
Bought pots from Sam on credit .........Show in the form of journal entries.
Received cash from sales
Paid wages with cash
Bought building with a bank loan
The Dr and Cr have been done. You need to interpret the transaction...ie paid salary with cash etc.
DR Loan $5000
CR Cash $5000
Dr XYZ Store $1000
Cr Sale of Mugs $1000