In: Accounting
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 |