The post closing trial balance for Adam Samuel Corporation on December 31, 2013, is shown below.
a. Calculate the current ratio and the debt ratio. Assume the unearned service revenue will be earned within six months. Round to two decimals.
b. Assume on December 31, 2013, Adam Samuel Corporation borrows $50,000 from the First Street Bank and issues a 6%, 6-month note. Recalculate the current ratio and the debt ratio. Round to two decimals.

Question

The post closing trial balance for Adam Samuel Corporation on December 31, 2013, is shown below.
  a. Calculate the current ratio and the debt ratio. Assume the unearned service revenue will be earned within six months. Round to two decimals.
b. Assume on December 31, 2013, Adam Samuel Corporation borrows $50,000 from the First Street Bank and issues a 6%, 6-month note. Recalculate the current ratio and the debt ratio. Round to two decimals.

Quizplus · Accepted Answer

The Answer of The post closing trial balance for Adam Samuel Corporation on December 31, 2013, is shown below.
  a. Calculate the current ratio and the debt ratio. Assume the unearned service revenue will be earned within six months. Round to two decimals.
b. Assume on December 31, 2013, Adam Samuel Corporation borrows $50,000 from the First Street Bank and issues a 6%, 6-month note. Recalculate the current ratio and the debt ratio. Round to two decimals.

The Post Closing Trial Balance for Adam Samuel Corporation on December