The following balance sheet data are reported for Brownlee Catering at September 30, 2015 Accounts receivable ......

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Accounting

The following balance sheet data are reported for BrownleeCatering at September 30, 2015
Accounts receivable ... $17,000
Notes payable ... $12,000
Equipment ... $34,000
Supplies Inventory ... $9,000
Accounts payable $24,000
Cash ... $10,000
Common Stock ... $27,500
Retained earnings ... ?
Assume that on October 1, 2015, only the two followingtransactions occurred:
October 1 - Purchased additional equipment costing $11,000 ,giving $3,000 cash and signing an $8,000 note payable
Declared and paid a cash dividend of $3,000
__________
a. Prepare Brownlee Catering’s balance sheet at September 30,2015
b. Prepare the company’s balance sheet at the close of thebusiness on October 1, 2015
c. Calculate Brownlee’s current and quick ratios on September 30and October 1 (assume notes payable are non current).
d. The October 1, 2015 transactions have decreased Brownlee’scurrent and quick ratios, reflecting a decline in liquidity.Identify two transactions that would increase the company’sliquidity

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4.1 Ratings (518 Votes)

a Total assets accounts receivableequipmentinventorycash 1700034000900010000 70000 Total liabilities and equity notes payableaccounts payablecommon stockretained earnings 120002400027500retained earnings 63500retained earnings As we know that total assets total liabilitiesequity So 70000 63500retained earnings Or retained earnings 7000063500 6500 Thus retained earnings 6500 On this basis the balance sheet is prepared and shown below Assets Liabilities Stockholders equity Current assets Current liability Cash 1000000 Accounts payable 2400000 Accounts receivable 1700000 Total See Answer

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The following balance sheet data are reported for BrownleeCatering at September 30, 2015Accounts receivable ... $17,000Notes payable ... $12,000Equipment ... $34,000Supplies Inventory ... $9,000Accounts payable $24,000Cash ... $10,000Common Stock ... $27,500Retained earnings ... ?Assume that on October 1, 2015, only the two followingtransactions occurred:October 1 - Purchased additional equipment costing $11,000 ,giving $3,000 cash and signing an $8,000 note payableDeclared and paid a cash dividend of $3,000__________a. Prepare Brownlee Catering’s balance sheet at September 30,2015b. Prepare the company’s balance sheet at the close of thebusiness on October 1, 2015c. Calculate Brownlee’s current and quick ratios on September 30and October 1 (assume notes payable are non current).d. The October 1, 2015 transactions have decreased Brownlee’scurrent and quick ratios, reflecting a decline in liquidity.Identify two transactions that would increase the company’sliquidity