Question

In: Accounting

Lasko Trial Balance as of 12/31/17 each account has a normal balance. Use this financial information...

Lasko Trial Balance as of 12/31/17 each account has a normal balance.

Use this financial information to answer the questions below.

Unearned Revenue	$25,000
Supplies	$15,500
Sales	$140,000
Salaries Expense	$22,000
Retained Earnings	$29,000
Rent Expense	$18,600
Additional Paid in Capital	$76,000
Insurance Expense	$4,500
Prepaid Insurance	$6,000
Office Equipment	$50,000
Notes Payable (Due 06/30/2018)	$12,000
Dividends	$5,000
Cost of Goods Sold	$72,400
Cash	$80,000
Capital Stock $1 par	$4,000
Accumulated Depreciation	$15,000
Accounts Receivable	$72,000
Depreciation Expense	$5,000
Accounts Payable	$50,000

1) What is the gross profit for Lasko for the year ended 12/31/17?

$67,600
$72,400
$92,600
$140,000
2) Using the Lasko Trial Balance as given above, then the most likely total for owner equity at 12/31/2017?
$151,500
$126,500
$121,500
$80,000
3) Using the Lasko Trial Balance as given above and that Lasko had a gross profit ratio (gross margin ratio) for 2016 of 50%, you can determine that for Lasko which of the following is true?
Their ability to generate profit from sales is worse than for the year 2016.
Their ability to generate profit from sales is better than for the year 2016.
Their ability to generate profit from sales is unchanged compared to the year 2016.
Can’t determine the gross profit ratio (gross margin ratio)in 2017 – not enough information.
4) Using the Lasko Trial Balance as given above and that Lasko had a current ratio for 2016 of 1.5:1; you can determine that for Lasko which of the following is true?
Their ability to pay short term obligations is worse than at the end of 2016.
Their ability to pay short term obligations is better than at the end of 2016.
Their ability to pay short term obligations is unchanged compared to the end of 2016.
5) Assuming that the only depreciable asset is the office equipment, the information shown in the trial balance indicates that the office equipment has been used by Lasko for how many years?
5 Years
4 Years
3 Years
2 Years
6) Looking at the Lasko Trial Balance for accuracy and based on what accounts are already listed, which of the following accounts should be included but are not?
Supplies expense
Interest expense
Allowance for Doubtful Accounts
All of the above accounts would be expected.

Expert Solution

1) What is the gross profit for Lasko for the year ended 12/31/17?

Gross profit = Sales - Cost of goods sold = $140,000 - $72,400 = $67,600

2) Using the Lasko Trial Balance as given above, then the most likely total for owner equity at 12/31/2017?

Total owner equity = $121,500

3) Using the Lasko Trial Balance as given above and that Lasko had a gross profit ratio (gross margin ratio) for 2016 of 50%, you can determine that for Lasko which of the following is true?

Their ability to generate profit from sales is worse than for the year 2016.

4) Using the Lasko Trial Balance as given above and that Lasko had a current ratio for 2016 of 1.5:1; you can determine that for Lasko which of the following is true?

Their ability to pay short term obligations is better than at the end of 2016.

5) Assuming that the only depreciable asset is the office equipment, the information shown in the trial balance indicates that the office equipment has been used by Lasko for how many years?

3 Years

6) Looking at the Lasko Trial Balance for accuracy and based on what accounts are already listed, which of the following accounts should be included but are not?

All of the above accounts would be expected.

ekkarill92 answered 1 month ago

12/31/17 Balance Sheet Cash $17,000 Account

12/31/17 Balance Sheet Cash $17,000 Accounts Receivable $12,000 Prepaid Insurance $5,000 Inventory $15,000 Total $49,000 Equipment $100,000 Accumulated Depreciation $(20,000) Total $80,000 Total Assets $129,000 Accounts Payable $9,000 Income Taxes Payable $3,000 Total Liabilities $12,000 Common Stock $100,000 Retained Earnings $17,000 Total Equity $117,000 Total Liabilities & Equity $129,000 Additional Information: Sales for 2018 are expected to be $200,000. Accounts Receivable turnover is expected to be 12...

The 12/31/17 balance in the prepaid insurance account is composed of the following policies:

The 12/31/17 balance in the prepaid insurance account is composed of the following policies: Coverage Period Amount 1/1/17-12/31/18 $8,368 6/1/17-11/30/18 4,800 12/1/17-5/31/18 2,000Prepare the adjusting journal entry for 12/31/17

December 31, 20XX, according to the Trial Balance, the Office Supplies account has a balance of...

December 31, 20XX, according to the Trial Balance, the Office Supplies account has a balance of 2,100.00. Adjustment data reveals that 960.00 of office supplies are on hand at the end of the period. Journalize the adjusting entry. December 31, 20XX, according to the Trial Balance, the Store Supplies account has a balance of 3,000.00. Adjustment data reveals that 2,000.00 of store supplies have been used at the end of the period. Journalize the adjusting entry. December 31, 20XX, according...

Preparation of Balance Sheet Conlon Corporation's December 31 post-closing trial balance contains the following normal account...

Preparation of Balance Sheet Conlon Corporation's December 31 post-closing trial balance contains the following normal account balances: Cash $2,200 Accounts payable 14,300 Building 308,000 Long-term notes payable 1,045,000 Common stock 440,000 Retained earnings 388,300 Accumulated depreciation-Equipment 143,000 Land 1,240,800 Accounts receivable 23,100 Accumulated depreciation-Building 77,000 Interest payable 26,400 Patent (net of amortization) 55,000 Notes payable (short term) 88,000 Inventory 150,700 Equipment 292,600 Allowance for doubtful accounts 1,100 Accumulated depreciation-Leasehold improvements 24,200 Leasehold improvements 154,000 Trademark (net of amortization) 20,900 Required...

The following information is available for xyz company ltd. as at 12/31/17 Balance as per bank...

The following information is available for xyz company ltd. as at 12/31/17 Balance as per bank statement $50,207.50 Balance as per general ledger $ 41,608.50 outstanding cheques $9,267 bank service charge $52 NSF checks $616 prepare a bank reconciliation and journal entries

Prepare a correct trial balance ,assuming all account balances are normal

An inexperienced bookkeeper prepared the following trial balance.Prepare a correct trial balance,assuming all account balances are normal Cappshaw Company Trial Balance December 31,2017 Particulars Debit$ Credit$ Cash 10,800 Prepaid Insurance 3,500 Accounts Payable 3,000 Unearned Service Revenue 2,200 Owner's Capital 9,000 Owner's Drawings 4,500 Service Revenue 25,600 Salaries & Wages Expense 18,600 Rent Expense 2,400 Total 31,600 31,600

JAMES ISLAND CLOTHING COMPANY Adjusted Trial Balance 12/31/18 Account Title Balance Debit Credit Cash $ 95,700...

JAMES ISLAND CLOTHING COMPANY Adjusted Trial Balance 12/31/18 Account Title Balance Debit Credit Cash $ 95,700 Accounts Receivable 12,000 Inventory 4,400 Office Equipment 26,000 Truck 18,000 Accumulated Depreciation—Plant Assets $ 6,000 Accounts Payable 5,500 Note Payable—Short Term 10,000 Note Payable—Long Term 33,000 Common Stock 100,000 Retained Earnings Dividends 1,000 Sales Revenue 15,000 Cost of Goods Sold 3,600 Rent Expense 2,000 Advertising Expense 800 Depreciation Expense 6,000...

Indicate which financial Statement will include each account listed, along with their normal balance. Choices for...

Indicate which financial Statement will include each account listed, along with their normal balance. Choices for Financial Statement : Balance Sheet Income Statement Shareholders Equity Comprehensive Income Normal Balance (Credit/Debit) Cash and cash equivalents B Marketable securities B Accounts receivable B Allowance for Doubtful Accounts B Other current assets B Property, capitalized software and equipment Accumulated depreciation B Goodwill B Intangible assets, net of accumulated amortization Long-term investments Deferred income taxes-asset Equity method investments Current portion of long-term debt B...

Closing Entries and Post-Closing Trial Balance for 12/31/16 Additional information: The equipment is being depreciated on...

Closing Entries and Post-Closing Trial Balance for 12/31/16 Additional information: The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value. Salaries accrued but not recorded total $500 On 1/1/16, the company had paid 3 years’ rent in advance at $100 per month Bad debts are expected to be 1% of total sales Interest of $400 has accrued on the note payable The income tax rate is 40% on current income and will be...

BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900...

BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $6,900 Accounts receivable 61,400 50,800 Short-term debt investments (available-for-sale) 35,000 17,800 Inventory 40,000 59,400 Prepaid rent 5,000 3,900 Equipment 155,200 129,000 Accumulated depreciation—equipment (35,000 ) (25,000 ) Copyrights 45,600 49,900 Total assets $313,100 $292,700 Accounts payable $46,300 $39,800 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 3,900 Short-term loans payable 8,000 10,100 Long-term loans payable 60,100 68,400 Common stock, $10 par 100,000...