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    The document provides examples and problems related to accounting seminar 6. It includes a quick ratio and working capital calculation. It also includes journal entries for various dates showing accounts receivable, accounts payable, interest payable, taxes payable, deferred revenue, notes payable, and long term liability transactions. The balance sheet lists current liabilities. The cash from operating activities section analyzes the effect of the journal entries on cash.

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    ACCT102

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    The document provides examples and problems related to accounting seminar 6. It includes a quick ratio and working capital calculation. It also includes journal entries for various dates showing accounts receivable, accounts payable, interest payable, taxes payable, deferred revenue, notes payable, and long term liability transactions. The balance sheet lists current liabilities. The cash from operating activities section analyzes the effect of the journal entries on cash.

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    23 views4 pages

    ACC121 SEM6 Examples

    Uploaded by

    Tia19778
    The document provides examples and problems related to accounting seminar 6. It includes a quick ratio and working capital calculation. It also includes journal entries for various dates showing accounts receivable, accounts payable, interest payable, taxes payable, deferred revenue, notes payable, and long term liability transactions. The balance sheet lists current liabilities. The cash from operating activities section analyzes the effect of the journal entries on cash.

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    of 4

    ACC121 Seminar 6 Examples

    M94.

    Quick Ratio: $20,000 / $90,000 = 0.22


    Working Capital: $ 120,000 - $ 90,000 = $ 30,000

    ALTERNATE PROBLEMS
    AP91.
    Req. 1
    January 15
    Tax expense (+E, -SE) ...................................................
    Taxes payable (+L) .....................................................
    Deferred tax liability (+L) .............................................

    125,000
    93,000
    32,000

    January 31
    Interest payable (-L) .......................................................
    Cash (-A) ....................................................................

    52,000

    April 30
    Cash (+A) .......................................................................
    Note payable (+L) .......................................................

    550,000

    June 3
    Inventory (+A) ................................................................
    Accounts payable (+L) ................................................

    75,820

    July 5
    Accounts payable (-L) ....................................................
    Cash (-A) ....................................................................

    75,820

    August 31
    Cash (+A) .......................................................................
    Revenue (+R, +SE) ....................................................
    Deferred revenue (+L) ................................................

    52,000

    550,000

    75,820

    75,820
    12,000
    8,000
    4,000

    Req. 2
    December 31
    Interest expense (+E, -SE) .............................................
    Interest payable (+L)...................................................

    44,000
    44,000

    Long-term liability (-L) ....................................................


    Current liability (+L) ....................................................

    100,000

    Wage expense (+E, -SE) ...............................................


    Wages payable (+L) ...................................................

    85,000

    100,000

    85,000

    AP91. (continued)
    Req. 3
    Balance Sheet:
    CURRENT LIABILITIES
    Wages Payable

    $85,000

    Taxes Payable

    93,000

    Deferred Tax Liability

    32,000

    Interest Payable

    44,000

    Deferred Revenue
    Note Payable

    4,000
    550,000

    Current Portion of Longterm Debt


    100,000
    TOTAL CURRENT
    LIABILITIES

    $908,000

    Req. 4
    Cash from Operating Activities:
    January 15

    No effect

    January 31

    Decreased

    April 30

    No effect

    June 3

    No effect

    July 5

    Decreased

    August 31

    Increased

    All December 31 transactions

    No effect

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