Question : 181.The unadjusted trial balance of Rapido Delivery entered the partial : 1236885

 

181.The unadjusted trial balance of Rapido Delivery is entered on the partial work sheet below. Complete the work sheet using the following information: (a) Salaries earned by employees that are unpaid and unrecorded, $5,000. (b) An inventory of supplies showed $1,000 of unused supplies still on hand. (c) Depreciation on delivery vans, $24,000. (d) Services paid in advance by customers of $10,000 have now been provided to customers. 

Rapido DeliveryWork SheetFor the year ended December 31

AccountUnadjusted Trial BalanceAdjustmentsAdjusted Trial BalanceIncome StatementBalance Sheet and Statement of Owner s Equity

DebitCreditDebitCreditDebitCreditDebitCreditDebitCredit

Cash70,000

Accounts Receivable10,000

Supplies3,000

Delivery Vans120,000

Accum. Depr.—Vans48,000

Accounts payable15,000

Unearned fees20,000

Salaries payable

B. Rapid, Capital55,000

B. Rapid, Withdrawals50,000

Fees earned320,000

Salary expense177,000

Rent expense28,000

Supplies expense

Depreciation expense

Totals458,000458,000

  

 

182.The following December 31 year-end adjusted trial balance is for Heath Wilmer Co. The credit balance in Heath Wilmer, Owner Capital at the beginning of the year, January 1, was $320,000. The owner, Heath Wilmer, invested an additional $300,000 during the current year. The land held for future expansion was also purchased during the current year. 

HEATH WILMER CO.ADJUSTED TRIAL BALANCEDECEMBER 31

Cash$90,000

Accounts receivable18,000

Prepaid insurance6,000

Office supplies2,000

Investments in stocks150,000

Land held for future expansion300,000

Office equipment18,000

Accumulated depreciation—Equipment$4,000

Building600,000

Accumulated depreciation—Building170,000

Intangible assets—licensing agreement50,000

Accounts payable17,800

Salaries payable16,400

Long-term note payable224,000

Heath Wilmer, Capital620,000

Heath Wilmer, Withdrawals60,000

Service fees earned470,800

Salaries expense180,000

Insurance expense12,000

Rent expense25,000

Depreciation expense—Equipment2,000

Depreciation expense—Building10,000

Totals$1,523,000$1,523,000

Required: 1. Prepare a classified year-end balance sheet. (Note: A $22,000 installment on the long-term note payable is due within one year.) 2. Using the information presented: (a) Calculate the current ratio. Comment on the ability of Heath Wilmer Co. to meets its short-term debts. (b) Calculate the debt ratio and comment on the financial position and risk analysis of Heath Wilmer Co. (c) Using the account balances to analyze the financial position of Heath Wilmer Co., why would the owner need to invest an additional $300,000 in the business when the business is already profitable and the owner had an existing capital balance of $320,000?  183.Mandalay Company frequently has accrued expenses at the end of its fiscal year that should be recorded for proper financial statement presentation. Mandalay pays on a weekly basis and has $50,000 of accrued salaries incurred but not paid for June 30, its fiscal year-end. This consists of one day’s accrued salaries for the week. The company will pay its employees $250,000 on July 4; the one day of accrued salaries and the remaining four days for July salaries. Record the following entries:(a) Accrual of the salaries on June 30.(b) Payment of the salaries on July 4, assuming that Mandalay does not prepare reversing entries.(c) Assuming that Mandalay prepares reversing entries, reverse the adjusting entry made on June 30.(d) Assuming that Mandalay prepares reversing entries, payment of the salaries on July 4.    

 

 

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