In: Accounting
1. Mansfield Office Furniture Store reported the following selected items at December 31, 2019 (previous year - 2018 - amounts are also given as needed):
Cash |
$ 50,000 |
Accounts Receivable, net: Dec. 31, 2019 Dec. 31, 2018 |
75,000 63,000 |
Accounts Payable |
55,000 |
Cost of Goods Sold |
375,000 |
Merchandise Inventory Dec. 31, 2019 Dec. 31, 2018 |
240,000 220,000 |
Net Credit Sales Revenue |
820,000 |
Long-Term Assets |
320,000 |
Long-Term Liabilities |
240,000 |
Other Current Assets |
135,000 |
Other Current Liabilities |
125,000 |
Short-term Investments |
80,000 |
Compute Mansfield's
acid-test ratio; (b) accounts receivable turnover ratio (round to 2 decimal places); and (c) days' sales in receivables for 2019 (round to the nearest day). Show your computations
2. The following is the adjusted trial balance for Baker Services.
Accounts |
Debit |
Credit |
Cash |
$31,100 |
|
Accounts Receivable |
30,000 |
|
Prepaid Insurance |
3,500 |
|
Office Supplies |
3,200 |
|
Land |
49,000 |
|
Building |
150,000 |
|
Accumulated Depreciation—Building |
$14,500 |
|
Equipment |
77,000 |
|
Accumulated Depreciation—Equipment |
7,000 |
|
Accounts Payable |
25,000 |
|
Salaries Payable |
2,000 |
|
Unearned Revenue |
26,000 |
|
Mortgage Payable |
106,000 |
|
Baker, Capital |
24,500 |
|
Baker, Withdrawals |
23,000 |
|
Service Revenue |
275,000 |
|
Salaries Expense |
64,000 |
|
Depreciation Expense—Building and Equipment |
5,600 |
|
Supplies Expense |
11,000 |
|
Insurance Expense |
14,600 |
|
Utilities Expense |
18,000 |
|
Total |
$480,000 |
$480,000 |
There were no new capital contributions during the year. After the closing entries are posted, what is the balance in Baker, Capital? Please show your calculations: