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Depreciation Expense
5/20/2018 Bookshelf Online: Horngren's Accounting
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5/20/2018 Bookshelf Online: Horngren's Accounting
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E4-17 Preparing a classified balance sheet and calculating the current ratio
Learning Objectives 1, 6
1. Total Assets $67,000
The adjusted trial balance of Penny O’Hara Dance Studio Company follows:
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5/20/2018 Bookshelf Online: Horngren's Accounting
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Requirements
1. Prepare the classified balance sheet of Penny O’Hara Dance Studio Company at August 31, 2016. Use the report form. You must compute the ending balance of O’Hara, Capital.
2. Compute O’Hara’s current ratio at August 31, 2016. One year ago, the current ratio was 1.57. Indicate whether O’Hara’s ability to pay current debts has improved, deteriorated, or remained the same.
5/20/2018 Bookshelf Online: Horngren's Accounting
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PRINTED BY: akinmola211@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted.
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E4-18 Preparing a worksheet
Learning Objective 2
The unadjusted trial balance of Voice Link at November 30, 2016, follows:
5/20/2018 Bookshelf Online: Horngren's Accounting
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Additional information at November 30, 2016:
a. Accrued service revenue, $600. b. Depreciation, $300.
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c. Accrued salaries expense, $600. d. Prepaid rent expired, $900. e. Office Supplies used, $500.
Requirements
1. Complete Voice Link’s worksheet for the month ended November 30, 2016. 2. How much was net income for November?
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PRINTED BY: akinmola211@gmail.com. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted.
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