In: Accounting
[The following information applies to the questions
displayed below.]
Cougar Plastics Company has been operating for three years. At
December 31 of last year the accounting records reflected the
following:
Cash | $ | 22,000 | Accounts payable | $ | 15,000 | |
Investments (short-term) | 3,000 | Accrued liabilities payable | 4,000 | |||
Accounts receivable | 3,000 | Notes payable (short-term) | 7,000 | |||
Inventory | 20,000 | Notes payable (long-term) | 47,000 | |||
Notes receivable (long-term) | 1,000 | Common stock | 10,000 | |||
Equipment | 50,000 | Additional paid-in capital | 80,000 | |||
Factory building | 90,000 | Retained earnings | 31,000 | |||
Intangibles | 5,000 | |||||
During the current year, the company had the following summarized
activities:
Required: |
1. & 2. |
Post the current year transactions to T-accounts for each of the accounts on the balance sheet. (Two items have been given in the cash T-account as examples). |
4. Prepare a trial balance at December 31 of the current year.
5. Prepare a classified balance sheet at December 31 of the current year.
6.
Compute the current ratio for the current year. (Round your answer to 2 decimal places.)