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linda_us
linda_us, Master's Degree
Category: Business and Finance Homework
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Experience:  A tutor for Business, Finance, Accounts and other related topics.
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21.2 Balanced Books BookkeepingJessica and David are student

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21.2 Balanced Books Bookkeeping Jessica and David are student interns at Balanced Books Bookkeeping. They have taken several business math and accounting classes and are now applying what they have learned to real-life situ- ations. They enjoy their internship, but they are sometimes surprised by the assignments they are given. Luckily, they work together, so they share the assignments and learn from each other. Their most recent assignment is to take a listing of accounts provided by one of Balanced Books’ clients and turn them into a balance sheet and income statement. David suggests that their client might ap- preciate it if they also performed a vertical analysis of each statement. Jessica suggests that they should also compute the current ratio and the acid-test ratio. 1. Create the financial statements for December 31, 2011, depict them in vertical format, and compute the current and acid test ratios. Account title Amount Account title Amount Cash $4,000 Accounts payable $3,500 Depreciation 2,000 Merchandise inventory 15,000 Carlton, equity 34,500 Accounts receivable 6,000 Cost of goods sold 85,000 Net sales 120,000 Rent expense 15,000 Insurance payable 500 Wages payable 1,500 Equipment 15,000 Utilities 6,500 Wages 8,000 Miscellaneous expenses 1,500 write a paragraph or so summarizing what you "took-away" from Case Study 21-2, p. 769. You can also include a real-world application of the tools used in each case study.

Submitted: 5 months ago.
Category: Business and Finance Homework
Expert:  linda_us replied 5 months ago.
Thanks for requesting me.

I am not sure about the requirement for the question
"write a paragraph or so summarizing what you "took-away" from Case Study 21-2, p. 769."

Do you want me to prepare Balance sheet, vertical analysis and calculate current and acid test ratios and then comment on it?
Customer: replied 5 months ago.

yes comment...what you learned from the case study and any real life applications.

Expert:  linda_us replied 5 months ago.
Whats your deadline for this assignment?
Customer: replied 5 months ago.

this evening

Expert:  linda_us replied 5 months ago.
I am working on it.
Customer: replied 5 months ago.

thank you!

Expert:  linda_us replied 5 months ago.
Is there any template that need to be followed for Income statment and Balance sheet?
Customer: replied 5 months ago.
Customer: replied 5 months ago.

if you dont like that...just put it into excel spreadsheet

Expert:  linda_us replied 5 months ago.
The example you just sent is showing expenses (for example Rent expense) as liabilties. Do you want me follow this? Or shall I prepare Income statement first and then Balance sheet?
Customer: replied 5 months ago.

do whatever you think is best...I am not sure my team member is doing it correctly.

Expert:  linda_us replied 5 months ago.
Sure, I will post once I am done and then if you have any questions let me know.
Expert:  linda_us replied 5 months ago.
Can you please recheck the figure...Debits are not matching credit

Dr. Cr.
4000 3500
2000
34500
15000 120000
6000 500
85000
15000
1500
15000
6500
8000
1500
156000 158500
Customer: replied 5 months ago.

 







































































































AssetsAmount
Cash $ 4,000.00
Cost of goods sold $ 85,000.00
Merchandise inventory $ 15,000.00
Accounts Receivable $ 6,000.00
Net sales $120,000.00
Equipment $ 15,000.00
Total Current Assets $245,000.00
LiabilitiesAmount
Depreciation $ 2,000.00
Rent expense $ 15,000.00
Utilities $ 6,500.00
Accounts payable $ 3,500.00
Wages payable $ 1,500.00
Miscellaneous expenses $ 1,500.00
Insurance payable $ 500.00
Wages $ 8,000.00
Total Liabilities $ 38,500.00
Owner's equityAmount
Carlton quity $ 34,500.00
Total Owner equity $ 34,500.00
Total Current Acid Ratios6.3
Expert:  linda_us replied 5 months ago.
The above is totally an incorrect representation of Financial statment. I can prepare the financial statement but the initial data itself is not correct. In accounting Debit must match credit but in the data intially provided Debit not matching credit.

Shall I assume a balancing figure to prepare balance sheet and income statment.
Customer: replied 5 months ago.

Yes...it should match the figures in the case study. Fix it ...make it look pretty...and you will most certainly receive a tip.

Expert:  linda_us replied 5 months ago.
linda_us, Master's Degree
Satisfied Customers: 6801
Experience: A tutor for Business, Finance, Accounts and other related topics.
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