E 6-1

Accounts Receivable 121

Note Payable 281

Mark Lancaster, Capital 311

Mark Lancaster, Withdrawals 321

Depreciation Expense 531

Assets, Current Assets, and Revenues are headings and would not be assigned an account number.

 

 

(10 min.) E 6-2

Total assets = $95,000 ($31,600 + $63,400)

Owner’s equity = $13,600 ($8,600 ! $2,000 + $28,000 ! $21,000)

Total liabilities = $81,400 ($95,000 ! $13,600)

Long-term liabilities = $40,300 ($81,400 ! $41,100)

 

 

(5 min.) E 6-3

Annual depreciation = B9 / C3

 

(5 min.) E 6-4

  1. Current ratio: = B6 / C8
  2. Total owner’s equity: = B14 ! C13
  3. Debt ratio: = C13 / B14

(10 min.) E 6-5

Cash Receipts Journal

DATE

DEBITS

CREDITS

COST OF GOODS

SOLD DR.

INVENTORY CR.

CASH

SALES

DISCOUNTS

ACCOUNTS

RECEIVABLE

SALES

REVENUE

OTHER ACCOUNTS

ACCOUNT TITLE

POST.

REF.

AMOUNT

May

16

911.40

18.60

930.00

 

L. Ewald

T

   
 

19

676.20

13.80

690.00

 

E. Lovell

T

   
 

24

300.00

   

300.00

     

190.00

 

30

4,100.00

________

4,100.00

______

T. Ross

T

 

___________

 

31

5,987.60

32.40

5,720.00

300.00

Totals

   

190.00



6,020 6,020

(5-10 min.) E 6-6

Posting Reference Actual Reference

a 111

b 512

c 112

d …………………………. 511

e T

f T

g 113

h 521

i T

j x

 

 

 

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