12th Edition

ISBN: 9780134486444

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

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Textbook Question

Chapter 4, Problem 2.8CP

Comprehensive Problem 2 for Chapters 1 − 4

This comprehensive problem is a continuation of Comprehensive Problem 1. Murphy Delivery Service has completed closing entries and the accounting cycle for 2018. The business is now ready to record January 2019 transactions.

Jan. 3	Collected $200 cash from customer on account.
5	Purchased office supplies on account, $1000.
12	Performed delivery services for a customer and received $3000 cash.
15	Paid employee salary, including the amount owed on December 31, $4,100.
18	Performed delivery services on account, $ 1,350.
20	Paid $300 on account.
24	Purchased fuel for the truck, paying $200 cash.
27	Completed the remaining work due for Unearned Revenue.
28	Paid office rent, $2,200, for the month of January.
30	Collected $3,000 in advance for delivery service to be performed later.
31	Murphy withdrew cash of $1,500.

8. Calculate the following ratios as of January 31, 2019, for Murphy Delivery Service: return on assets, debt ratio, and current ratio.

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Chapter 4, Problem 2.7CP

Chapter 4, Problem 4.1TIATC

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Chapter 4 Solutions

Horngren's Accounting (12th Edition)

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