A partial worksheet for Ramey Law Firm is presented below. Solve for the missing information. Total 6 5 A J K L M 33 34 35 (a) $ 211,325 $ 202,950 (e) 8,375 (d) $ 24,850 $ 24,850 Debit Credit Debit Credit Income Statement Balance Sheet Net (b) (c) Total (f).
Total debit in income statement is calculated as follows:
In the income statement, total credits (revenues) are higher than total debits (expenses), hence it will result in net income.
Net income is transferred to the retained earnings, hence in the worksheet it will be posted under credit side under balance sheet section.
In the income statement, total credit balance equals $24,850, hence total debit balance should also be equal to $24,850.
In the balance sheet section, total credit balance equals $211,325, hence total debit balance should also be equal to $211,325.
As net income of $8,375 is posted on credit side of balance sheet, the total credit balance equals $211,325.
End of the Line Montana Refrigeration has these account balances at December 31, 2018: Notes Payable, long-term $ 9,200 Accounts Payable $ 3,600 Prepaid Rent 2,500 Accounts Receivable 6,600 Salaries Payable 2,600 Cash 3,500 Service Revenue 15,600 Depreciation Expense—Equip. 400 Office Supplies 1,300 Equipment 24,000 Accumulated Depreciation—Equip. 4,000 Common Stock 6,000 Advertising Expense 900 Rent Expense 1,800 Requirements 1. Calculate End of the Line Montana Refrigeration’s current ratio. 2. How much in current assets does End of the Line Montana Refrigeration have for every dollar of current liabilities that it owes?
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