Prepare balance sheets, show net income, compute debt ratio
I have an accounting problem in which a list of assets and liabilities are given for 2007 and 2008. I am also given some transactions that happened toward the end of 2008involving purchasing land/building in which some is a note payable for the balance, some stock was purchased and dividends are paid per month.
I am to prepare balance sheets for the business as of December 31, 2007 and 2008.
I am also required to prepare a calculation to show net income for 2008 and compute 2008year-end debt ration for the business.
I don't know how to even get started.
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