Financial and Managerial Accounting (Looseleaf) (Custom Package)
6th Edition
ISBN: 9781259754883
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 14, Problem 3MCQ
What is Ella Company’s acid-test ratio?
a.2.39
b.0.69
c.131
d.6.69
e.3.88
Use the following information for question 2 through 5.
| Ella Company |
| Assets |
| Cash…………………….............. $ 86,000 |
| Merchandise inventory…………………….. 122,000 |
| Prepaid insurance…………………………….. 12,000 |
| Long-term investments……………………….. 98,000 |
| Plant assets, net……………………………. 436,000 |
| Total assets……………………. $830,000 |
| Liabilities and Equity………………… |
| Current liabilities……………… $124,000 |
| Long-term liabilities………………… 90,000 |
| Common stock……………………………. 300,000 |
| Total liabilities and equity………………. $830,000 |
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Calculate liquidity measures The following amounts were reported on theDecember 31, 2013, balance sheet:
Cash.......................................... $ 8,000Accounts receivable .................. 22,000Common stock ......................... 40,000Wages payable ......................... 5,000Retained earnings ..................... 80,000Land .......................................... 20,000Accounts payable ..................... $ 15,000Bonds payable .......................... 120,000Merchandise inventory .............. 30,000Buildings and equipment, net ofaccumulated depreciation ..... 180,000
Required:a. Calculate working capital at December 31, 2013.b. Calculate the current ratio at December 31, 2013.c. Calculate the acid-test ratio at December 31, 2013.
Mosaic’s Company balance sheet at December 31, 2018, reported thefollowing:Accounts receivable...........................................$2,500,000Allowance for uncollectible accounts...................$66,600The following are the transactions to be taken into consideration for 2019:a. Total credit sales for 2019 were $3,600,000.b. 2% of sales were estimated to be uncollectible.c. The company received cash payments on account during 2019 for $1,000,000d. Accounts receivable identified to be uncollectible totaled $94,000.e. December 31, 2019, aging of receivables indicates that $75,000 of the receivablesis uncollectible.Requirements:1. Prepare a Balance Sheet extract clearly showing the net realizable value of thereceivables as at December 31, 2018?2. Prepare the journal entries for the company’s 2019 transactions.3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T-accounts based on the information presented above. (Note: The opening balancesand the…
Chapter 14 Solutions
Financial and Managerial Accounting (Looseleaf) (Custom Package)
Ch. 14 - Prob. 1MCQCh. 14 - What is Ella Company’s current ratio? a.0.69...Ch. 14 - What is Ella Company’s acid-test ratio? a.2.39...Ch. 14 - What is Ella Company’s debt ratio? a. 25.78% b....Ch. 14 - What is Ella Company’s equity ratio? a.25.78%...Ch. 14 - Describe the managerial accountant’s role in...Ch. 14 - Distinguish between managerial and financial...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Distinguish between (a) factory overhead and (b)...
Ch. 14 - Prob. 6DQCh. 14 - What product cost is both a prime cost and a...Ch. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQCh. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - Prob. 15DQCh. 14 - Prob. 16DQCh. 14 - Prob. 17DQCh. 14 - What are the three categories of manufacturing...Ch. 14 - List several examples of factory overhead.Ch. 14 - Prob. 20DQCh. 14 - Prob. 21DQCh. 14 - Prob. 22DQCh. 14 - Prob. 23DQCh. 14 - Prob. 24DQCh. 14 - Prob. 25DQCh. 14 - Prob. 1QSCh. 14 - Prob. 2QSCh. 14 - QS 14-4 Direct and indirect costs C2
Diez Company...Ch. 14 - Classifying product costs C2 Identify each of the...Ch. 14 - QS 14-6 Product and period costs C3
Identify each...Ch. 14 - Prob. 6QSCh. 14 - Prob. 7QSCh. 14 - Prob. 8QSCh. 14 - Prob. 9QSCh. 14 - Prob. 10QSCh. 14 - Prob. 11QSCh. 14 - Prob. 12QSCh. 14 - Prob. 13QSCh. 14 - Prob. 14QSCh. 14 - Exercise 14-1 Sources of accounting information C1...Ch. 14 - Prob. 2ECh. 14 - Exercise 14-3 Cost classifications for a service...Ch. 14 - Exercise 14-4 Cost classifications for a service...Ch. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7ECh. 14 - Prob. 8ECh. 14 - Prob. 9ECh. 14 - Prob. 10ECh. 14 - Prob. 11ECh. 14 - Prob. 12ECh. 14 - Prob. 13ECh. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Exercise 14-17 Lean business practice C6 Many...Ch. 14 - Prob. 1PSACh. 14 - Prob. 2PSACh. 14 - Prob. 3PSACh. 14 - Prob. 4PSACh. 14 - Prob. 5PSACh. 14 - Prob. 1PSBCh. 14 - Prob. 2PSBCh. 14 - Prob. 3PSBCh. 14 - Prob. 4PSBCh. 14 - Prob. 5PSBCh. 14 - Prob. 14SPCh. 14 - Prob. 1BTNCh. 14 - Prob. 2BTNCh. 14 - Prob. 3BTNCh. 14 - Prob. 4BTNCh. 14 - Prob. 5BTNCh. 14 - Prob. 6BTNCh. 14 - Prob. 7BTNCh. 14 - Prob. 8BTNCh. 14 - Prob. 9BTN
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