Question: superior hardwood company distributes hardwood products to small furniture manufacturers...
Superior Hardwood Company distributes hardwood products to small
furniture manufacturers. The adjusted trial balance data given
below is from the firm’s worksheet for the year ended December 31,
|Petty Cash Fund||400|
|Notes Receivable, due 2020||11,400|
|Allowance for Doubtful Accounts||$||5,600|
|Accumulated Depreciation—Warehouse Equipment||16,200|
|Accumulated Depreciation—Delivery Equipment||18,800|
|Accumulated Depreciation—Office Equipment||10,800|
|Notes Payable, due 2020||19,800|
|Loans Payable, Long-term||15,000|
|Charles Ronie, Capital (Jan. 1)||436,760|
|Charles Ronie, Drawing||126,600|
|Sales Returns and Allowances||17,800|
|Purchases Returns and Allowances||8,040|
|Warehouse Wages Expense||195,600|
|Warehouse Supplies Expense||6,700|
|Depreciation Expense—Warehouse Equipment||5,400|
|Travel and Entertainment Expense||21,100|
|Delivery Wages Expense||59,930|
|Depreciation Expense—Delivery Equipment||9,400|
|Office Supplies Expense||3,600|
|Payroll Taxes Expense||57,000|
|Property Taxes Expense||5,200|
|Uncollectible Accounts Expense||5,400|
|Depreciation Expense—Office Equipment||3,600|
- Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
- Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period.
- Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.
What is the current ratio for this business?