David Reyes owns and operates Subic Bait and Boat Rental. The year end trial balance and adjustment information is provided as follows: Subic Bait Shop and Boat Rental TRIAL BALANCE December 31,2019 Cash 100,000.00 75,000.00 Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance 190,000.00 9,000.00 12,000,00 50,000.00 Land Building Accum. Depreciation- Building Store Equipment Accum. Depreciation- Store Equip Notes Payable Accounts Payable Unearned Boat Rental Revenue 450,000.00 80,000.00 250,000.00 75,000.00 25,000.00 50,000.00 110,000.00 779,000.00 Reyes, Capital Reyes, Withdrawals Sales Sales Return and Allowances Purchases 100,000.00 1,002,500.00 6.000,00 525,000.00 Purchase return & allowances Purchased Discounts 4,000.00 5,000.00 Transportation in Salaries Expense Utilities Expense Advertising expense Telecommunication expense Miscellaneous Expense 1,500.00 210,000.00 60,000.00 37,500.00 17,500.00 37,000.00 2,130,500.00 2,130,500.00 ADJUSTMENTS: A. Based on physical count, it was determined that merchandise inventory costing 150,000 is on hand as at Dec. 31, 2019. B. Supplies remaining at the end year 2,000 c. Unexpired insurance on dec 31 is 3,000 D. Depreciation expense on the building 20,000 E. Depreciation expense on the Equipment 15,000 F. Salaries incurred but not yet paid is at 2,250 G. Unearned boat rental revenue is at dec. 31 10,000
David Reyes owns and operates Subic Bait and Boat Rental. The year end trial balance and adjustment information is provided as follows: Subic Bait Shop and Boat Rental TRIAL BALANCE December 31,2019 Cash 100,000.00 75,000.00 Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance 190,000.00 9,000.00 12,000,00 50,000.00 Land Building Accum. Depreciation- Building Store Equipment Accum. Depreciation- Store Equip Notes Payable Accounts Payable Unearned Boat Rental Revenue 450,000.00 80,000.00 250,000.00 75,000.00 25,000.00 50,000.00 110,000.00 779,000.00 Reyes, Capital Reyes, Withdrawals Sales Sales Return and Allowances Purchases 100,000.00 1,002,500.00 6.000,00 525,000.00 Purchase return & allowances Purchased Discounts 4,000.00 5,000.00 Transportation in Salaries Expense Utilities Expense Advertising expense Telecommunication expense Miscellaneous Expense 1,500.00 210,000.00 60,000.00 37,500.00 17,500.00 37,000.00 2,130,500.00 2,130,500.00 ADJUSTMENTS: A. Based on physical count, it was determined that merchandise inventory costing 150,000 is on hand as at Dec. 31, 2019. B. Supplies remaining at the end year 2,000 c. Unexpired insurance on dec 31 is 3,000 D. Depreciation expense on the building 20,000 E. Depreciation expense on the Equipment 15,000 F. Salaries incurred but not yet paid is at 2,250 G. Unearned boat rental revenue is at dec. 31 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ratio Analysis
1. Liquidity ratio
2. Activity ratio
3. Solvency Ratio
4. Profitability Ratio
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