The calendar year-end adjusted trial balance for Acosta Co.follows:

Required:
a.Prepare a classified year-end balance sheet.(Note: A $7,000 installment on the long-term note payable is due within one year.)
b.Calculate the current ratio.

Question

The calendar year-end adjusted trial balance for Acosta Co.follows:
  
Required:
a.Prepare a classified year-end balance sheet.(Note: A $7,000 installment on the long-term note payable is due within one year.)
b.Calculate the current ratio.

Quizplus · Accepted Answer

11ea8897_df48_550d_a96f_4fc638ad976c_TB6312_00_TB6312_00_TB6312_00 11ea8897_df48_550e_a96f_9bcf1e49dbed_TB6312_00_TB6312_00_TB6312_00 b.($134,300 / $29,800)= 4.5
 NI = $370,800 - $90,000 - $5,200 - $5,000 - $800 - $7,000 = $262,800
Retained earnings = $960,000 + $262,800 - $200,500 = $1,022,300

The Calendar Year-End Adjusted Trial Balance for Acosta Co