QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3 At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200. 1. Acquired Inventory for $220 cash. 2. Sold a long-term asset (equipment) for $4,100 cash. 3. Accrued wages payable of $1,600. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities Current Ratio
QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3 At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200. 1. Acquired Inventory for $220 cash. 2. Sold a long-term asset (equipment) for $4,100 cash. 3. Accrued wages payable of $1,600. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities Current Ratio
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...
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![QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3
At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200.
1. Acquired Inventory for $220 cash.
2. Sold a long-term asset (equipment) for $4,100 cash.
3. Accrued wages payable of $1,600.
Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total
current liabilities, and the current ratio.
Transaction
1.
2.
3.
Current Assets
Current Liabilities
Current Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66947364-781a-4c5b-9f23-45871f645082%2F5a9ced8b-4f5b-4389-8993-ff9e46bb5938%2Fvi3f9w_processed.png&w=3840&q=75)
Transcribed Image Text:QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3
At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200.
1. Acquired Inventory for $220 cash.
2. Sold a long-term asset (equipment) for $4,100 cash.
3. Accrued wages payable of $1,600.
Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total
current liabilities, and the current ratio.
Transaction
1.
2.
3.
Current Assets
Current Liabilities
Current Ratio
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