Homework Help is Here – Start Your Trial Now!
Business
Accounting
Presented below is the December 31, 2020 pre-closing trial balance for Tumbleweed Painting Company. 1. Prepare a classified balance sheet as of December 31, 2020 in good form like you would present it to a client (i.e. proper heading, dollar signs, underlining, no abbreviations). 2. Calculate working capital and the current ratio, (round the ratio to 2 places past the decimal) Account Title Accounts payable $ 22,000 Accounts receivable 82,000 Arcumulated denreciation buildinns 7 500

Presented below is the December 31, 2020 pre-closing trial balance for Tumbleweed Painting Company. 1. Prepare a classified balance sheet as of December 31, 2020 in good form like you would present it to a client (i.e. proper heading, dollar signs, underlining, no abbreviations). 2. Calculate working capital and the current ratio, (round the ratio to 2 places past the decimal) Account Title Accounts payable $ 22,000 Accounts receivable 82,000 Arcumulated denreciation buildinns 7 500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
answer quickly
Presented below is the December 31, 2020 pre-closing trial balance for Tumbleweed Painting Company. 1. Prepare a classified balance sheet as of December 31, 2020 in good form like you would present it to a client (i.e. proper heading, dollar signs, underlining, no abbreviations). 2. Calculate working capital and the current ratio. (round the ratio to 2 places past the decimal) Account Title Accounts payable $ 22,000 Accounts receivable 82,000 Accumulated depreciation - buildings 7,500 Accumulated depreciation - equipment 2,200 Allowance for doubtful accounts 9,000 Bonds payable due in 2030 72,000 Buildings 150,000 Cash 150,000 Common stock, $1 par vaue 75,000 Cost of goods sold 44,000 Discount on bonds payable 17,500 Equipment 23.000 Goodwill 13,000 Income taxes payable 8,500 Inventory 12,750 Investments 54.000 Notes payable due in 2026 60,000 Notes payable in annual installments of $50,000 beginning in January 2021 200,000 Painting sales 95,000 Patents 23,000 Preferred stock, $10 par value 50,000 Prepaid insurance 650 Retained earnings ????? Treasury Stock 38,500 Wages payable 900 Additional infomation: 1. The cash account includes $30,000 set aside for the repayment of bonds, $24,000 which is restricted to purchase a new vehicle in two years, $50,000 which is held in a commercial checking account, a $100 overdraft in an account at a different bank, and $46,100 in a certificate of deposit which will mature in 180 days. 2. 200,000 shares of common stock are authorized. 15,000 shares of common stock are held in treasury. 20,000 shares of preferred stock are authorized and all shares that have been issued are currently outstanding 3. The investments account includes $12,000 of commercial paper which has a maturity of 30 days. The account also includes $17,000 in short-term investments. The remaining balance is invested in various securities which company management intends to hold for several years 4. All accounts have normal balances. 5. Footnotes are not required.
Transcribed Image Text:Presented below is the December 31, 2020 pre-closing trial balance for Tumbleweed Painting Company. 1. Prepare a classified balance sheet as of December 31, 2020 in good form like you would present it to a client (i.e. proper heading, dollar signs, underlining, no abbreviations). 2. Calculate working capital and the current ratio. (round the ratio to 2 places past the decimal) Account Title Accounts payable $ 22,000 Accounts receivable 82,000 Accumulated depreciation - buildings 7,500 Accumulated depreciation - equipment 2,200 Allowance for doubtful accounts 9,000 Bonds payable due in 2030 72,000 Buildings 150,000 Cash 150,000 Common stock, $1 par vaue 75,000 Cost of goods sold 44,000 Discount on bonds payable 17,500 Equipment 23.000 Goodwill 13,000 Income taxes payable 8,500 Inventory 12,750 Investments 54.000 Notes payable due in 2026 60,000 Notes payable in annual installments of $50,000 beginning in January 2021 200,000 Painting sales 95,000 Patents 23,000 Preferred stock, $10 par value 50,000 Prepaid insurance 650 Retained earnings ????? Treasury Stock 38,500 Wages payable 900 Additional infomation: 1. The cash account includes $30,000 set aside for the repayment of bonds, $24,000 which is restricted to purchase a new vehicle in two years, $50,000 which is held in a commercial checking account, a $100 overdraft in an account at a different bank, and $46,100 in a certificate of deposit which will mature in 180 days. 2. 200,000 shares of common stock are authorized. 15,000 shares of common stock are held in treasury. 20,000 shares of preferred stock are authorized and all shares that have been issued are currently outstanding 3. The investments account includes $12,000 of commercial paper which has a maturity of 30 days. The account also includes $17,000 in short-term investments. The remaining balance is invested in various securities which company management intends to hold for several years 4. All accounts have normal balances. 5. Footnotes are not required.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS