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In: Accounting

Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available...

Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2019.

Accounts payable $ 65,100 Equipment, data processing $309,000
Accounts receivable 95,500 Income taxes payable 150,000
Accumulated depreciation Interest payable 12,600
(on building) 216,800 Inventory 187,900
Accumulated depreciation Investments (long-term) 32,700
(on data processing equipment) 172,400 Investments (short-term) 10,400
Accumulated depreciation 31,200 Land 41,000
(on trucks) Notes payable (due June 1, 2020) 21,600
Bonds payable (due Aug. 30, 2023) 200,000 Prepaid insurance (for 4 months) 5,700
Building (warehouse) 419,900 Retained earnings, 12/31/2019 ?
Cash 18,000 Salaries payable 14,400
Common stock 150,000 Trucks 106,100

Required:

1. Prepare a classified balance sheet for Jerrison at December 31, 2019.

2.Compute Jerrison's working capital and current ratio at December 31, 2019. Round the current ratio answer to two decimal places.

Working Capital $
Current Ratio
Jerrison Company
Balance Sheet
December 31, 2019
Assets
Current assets:
Cash $
Investments (short-term)
Accounts receivable
Prepaid insurance
Inventory
Total current assets $
Long-term investments:
Investment
Property, plant, and equipment:
Land $
Building $
Less: Accumulated depreciation
Trucks $
Less: Accumulated depreciation
Equipment (data processing) $
Less: Accumulated depreciation
Total property, plant and equipment
Total assets $
Liabilities
Current liabilities:
Accounts payable $
Notes payable
Salaries payable
Interest payable
Income taxes payable
Total current liabilities $
Long-term liabilities:
Bonds payable
Total liabilities $
Stockholders' Equity
Common stock $
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity $
Working Capital $
Current Ratio

Solutions

Expert Solution

Answer is given below

Retained earnings is the balancing number in Balance Sheet

ekkarill92 answered 1 year ago
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