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  • Mar 6, 2011, 11:04 PM
    rosa21
    Homework help!
    An alphabetical list of the adjusted account balances (all accounts have normal balances) at August 31, 2011, for Alpine Bowling Lanes is as follows:


    Accounts payable $ 12,300 Interest expense $ 4,800

    Accounts receivable 10,780 Interest payable 400

    Accumulated depreciation—building 30,900 Investment in bonds 10,000

    Accumulated depreciation—equipment 24,960 Land 64,000

    Depreciation expense 9,300 Mortgage payable 99,780

    Bowling revenues 35,900 Prepaid insurance 4,590

    Building 128,800 Supplies 740


    Prepare an income statement and statement of owner's equity for the year ended August 31, 2011, and a classified balance sheet at August 31, 2011. Assume the following: (1) $12,750 of the mortgage payable will be paid before August 31, 2012; and (2) the company intends to keep its investment in bonds until the bonds mature in 2020.


    (If you select Loss, do not enter amount as a negative number.)

    Bowling revenue $ 35,900

    Total expenses 14970

    Profit or loss +20930
    ( i dont know how to calculate the capital, can anyone help me)
    T. Williams, capital, August 31, 2011

    Total current assets

    Total assets

    Total current liabilities

    Total liabilities

    Total liabilities and owner's equity


    Calculate working capital, the current ratio, and the acid-test ratio. Round ratios to two decimal places.

    Working capital $
    Current ratio :1
    Acid-test ratio :1





    Cash 17,940 T. Williams, capital 125,000

    Equipment 62,400 T. Williams, drawings 16,000

    Insurance expense 870 Unearned bowling revenue 980

  • Mar 7, 2011, 07:15 AM
    pready

    Total capital is equal to Assets minus Liabilities.
  • Mar 7, 2011, 10:32 AM
    rosa21
    Comment on pready's post
    I don't get it. Is the capital $12,750 or Investment in bonds 10,000?

  • Mar 7, 2011, 10:50 AM
    rosa21
    Comment on pready's post
    What I know is
    Add:investment $12,750
    Profit 20930 33680
    Drawing 16,000
    Capital 17680

    I don't know if these is right
    Sorry I didn't put drawing in the top
  • Mar 7, 2011, 10:53 AM
    rosa21
    Comment on pready's post
    Sorry about these I didn't add a few things in theseCash 17,940 T. Williams, capital 125,000

    Equipment 62,400 T. Williams, drawings 16,000
    Insurance expense 870 Unearned bowling revenue 980

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