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Closing Entries After the accounts have been adjusted at April 30, the end of the fiscal...

Closing Entries

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:

Oscar Killingsworth, Capital $503,900
Oscar Killingsworth, Drawing 8,200
Fees Earned 279,100
Wages Expense 221,600
Rent Expense 43,800
Supplies Expense 9,000
Miscellaneous Expense 10,200

Journalize the two entries required to close the accounts.

If an amount box does not require an entry, leave it blank.

Apr. 30
Apr. 30

Closing Entries

After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:

Oscar Killingsworth, Capital $870,670
Oscar Killingsworth, Drawing 40,000
Fees Earned 563,005
Wages Expense 426,800
Rent Expense 102,400
Supplies Expense 38,410
Miscellaneous Expense 12,805

Journalize the two entries required to close the accounts.

If an amount box does not require an entry, leave it blank.

Apr. 30
Apr. 30

Working Capital and Current Ratio

Current assets and current liabilities for Konex Properties Company follow:

   20Y9    20Y8
Current assets $2,042,400 $1,759,500
Current liabilities 1,380,000 1,150,000

a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places.

20Y9 20Y8
Working capital $ $
Current ratio

b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?

Working Capital and Current Ratio

Current assets and current liabilities for Sandstone Company follow:

   20Y9    20Y8
Current assets $2,133,800 $1,613,300
Current liabilities 940,000 730,000

a. Determine the working capital and current ratio for 20Y9 and 20Y8. If required, round "current ratio" answers to two decimal places.

20Y9 20Y8
Working capital $ $
Current ratio

b. Is the change in the current ratio from 20Y8 to 20Y9 favorable or unfavorable?

Solutions

Expert Solution

Ans-1

Ans-2

Ans-3-(a)

Working Capital = Excess of Current Assets over Current LIabilities = Current Assets - Current Liabilities

Current Ratio = Current Assets / Current Liabilities

Ans-3-(b)

The Current Ratio has deteriorated in 20Y9 as compared to 20Y8 as Current Assets per units of Current Liability have declined by 0.05 (1.53-1.48)

Ans-4-(a)

Ans-4-(b)

The Current Ratio has improved in 20Y9 as compared to 20Y8 as Current Assets per units of Current Liability have increased by 0.06 (2.27-2.21)

ekkarill92 answered 1 year ago
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