Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2019. S 6,100 Accounts payable Accounts receivable Accumulated depreciation (on building) Accumulated depreciation (on data processing equipment) Accumulated depreciation (on trucks) Bonds payable (due Aug. 30, 2023) Building (warehouse) Equipment, data processing Income taxes payable Interest payable Inventory Investments (long-term) Investments (short-term) $309,000 21,600 12,600 187,900 32,700 21,000 95,500 216,800 172,400 31,200 Land Notes payable (due June 1, 2020) Prepaid insurance (for 4 months) Retained earnings, 12/31/2019 Salaries payable Trucks 41,000 150,000 5,700 ? 200,000 419,900 Cash Common stock 11,400 150,000 14,400 106,100 (Continued) Required: 1. Prepare a classified balance sheet for Jerrison at December 31, 2019. 2. Compute Jerrison's working capital and current ratio at December 31, 2019.
Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2019. S 6,100 Accounts payable Accounts receivable Accumulated depreciation (on building) Accumulated depreciation (on data processing equipment) Accumulated depreciation (on trucks) Bonds payable (due Aug. 30, 2023) Building (warehouse) Equipment, data processing Income taxes payable Interest payable Inventory Investments (long-term) Investments (short-term) $309,000 21,600 12,600 187,900 32,700 21,000 95,500 216,800 172,400 31,200 Land Notes payable (due June 1, 2020) Prepaid insurance (for 4 months) Retained earnings, 12/31/2019 Salaries payable Trucks 41,000 150,000 5,700 ? 200,000 419,900 Cash Common stock 11,400 150,000 14,400 106,100 (Continued) Required: 1. Prepare a classified balance sheet for Jerrison at December 31, 2019. 2. Compute Jerrison's working capital and current ratio at December 31, 2019.
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 4.13C
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Exercise 1-43 Cla...
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: Exercise 1-43 Classified Balance...
•..
Jerrison Company operates a wholesale
hardware business. The following
balance sheet accounts and balances
are available for Jerrison at December
31, 2019.
HE!
$ 65,100
Accounts payable
Accounts receivable
Equipment, data processing
Income taxes payable
Interest payable
Inventory
Investments (long-term)
Investments (short-term)
Land
Notes payable (due June 1, 2020)
Prepaid insurance (for 4 months)
Retained earnings, 12/31/2019
Salaries payable
Trucks
S309,000
21,600
12,600
187,900
95,500
Accumulated depreciation
(on building)
Accumulated depreciation
(on data processing equipment)
Accumulated depreciation
(on trucks)
Bonds payable (due Aug. 30, 2023)
Building (warehouse)
216,800
32,700
172,400
21,000
31,200
41,000
150,000
5,700
200,000
419.900
Cash
11,400
14,400
Common stock
150,000
106,100
(Continued)
Required:
1. Prepare a classified balance sheet for
Jerrison at December 31, 2019.
2. Compute Jerrison's working capital
and current ratio at December 31, 2019.
3. CONCEPTUAL CONNECI'ION If
Jerrison's management is concerned
that a large portion of its inventory is
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