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Peterson Corporation Adjusted Trial Balance July 31, 2021 Account Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment $ Debit 12,400 19,100 2,400 1,700 37,000 10,000 1,300 S Credit 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 1,700 37,000 10,000 1,300 40,000 11,000 3,400 $ 4,000 2,300 7,300 151,900 $ 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 151,900

Peterson Corporation Adjusted Trial Balance July 31, 2021 Account Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment $ Debit 12,400 19,100 2,400 1,700 37,000 10,000 1,300 S Credit 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 1,700 37,000 10,000 1,300 40,000 11,000 3,400 $ 4,000 2,300 7,300 151,900 $ 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 151,900

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Peterson Corporation Adjusted Trial Balance July 31, 2021 Account Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment D $ Debit 12,400 19,100 2,400 1,700 37,000 10,000 1,300 $ Credit 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense-equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 1,700 37,000 10,000 $ 1,300 40,000 11,000 3,400 4,000 2,300 7,300 151,900 $ 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 151,900
Transcribed Image Text:Peterson Corporation Adjusted Trial Balance July 31, 2021 Account Cash Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense equipment D $ Debit 12,400 19,100 2,400 1,700 37,000 10,000 1,300 $ Credit 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 Prepaid rent Equipment Accumulated depreciation equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends Service revenue Depreciation expense-equipment Salary expense Rent expense Interest expense Insurance expense Supplies expense Income tax expense Total $ 1,700 37,000 10,000 $ 1,300 40,000 11,000 3,400 4,000 2,300 7,300 151,900 $ 5,000 8,800 1,050 900 2,200 18,500 19,000 2,500 93,950 151,900
The adjusted trial balance for the year of Peterson Corporation at July 31, 2021, follows. EEE (Click the icon to view the adjusted trial balance.) Read the requirements. Retained earnings, July 31, 2021 Prepare the balance sheet. (If an input field is not used in the balance sheet leave the field empty, do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections. Check your spelling carefully and do not abbreviate. Use only the account names provided in the adjusted trial balance.) Less: Assets Peterson Corporation Balance Sheet July 31, 2021 Total liabilities Liabilities Stockholders' Equity Total stockholders' equity Total assets Total liabilities and stockholders' equity Requirement 2. Peterson's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Peterson's debt ratio at July 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Peterson could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Peterson's debt ratio at July 31, 2021. (Round your calculation to two decimal places.) Debt ratio = Peterson's lenders require that the company maintain a debt ratio no higher than 0.50. Peterson is with this debt restriction at July 31, 2021.
Transcribed Image Text:The adjusted trial balance for the year of Peterson Corporation at July 31, 2021, follows. EEE (Click the icon to view the adjusted trial balance.) Read the requirements. Retained earnings, July 31, 2021 Prepare the balance sheet. (If an input field is not used in the balance sheet leave the field empty, do not select a label or enter a zero. Do not classify the balance sheet into current and long-term sections. Check your spelling carefully and do not abbreviate. Use only the account names provided in the adjusted trial balance.) Less: Assets Peterson Corporation Balance Sheet July 31, 2021 Total liabilities Liabilities Stockholders' Equity Total stockholders' equity Total assets Total liabilities and stockholders' equity Requirement 2. Peterson's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Peterson's debt ratio at July 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Peterson could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Peterson's debt ratio at July 31, 2021. (Round your calculation to two decimal places.) Debt ratio = Peterson's lenders require that the company maintain a debt ratio no higher than 0.50. Peterson is with this debt restriction at July 31, 2021.
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