1.Comment on the appropriateness of the accounting procedures:(a) During the year, the company purchased equipment through the issuance of common stock. The stock had a par value of $20,000 and a fair value of 100,000. The fair value of the equipment was not easily determinable. The company recorded this transaction as follows.Equipment 20,000 Common Stock 20,000(b) On December 23, Year 1, an order of $48,000 has been received from a customer for products on hand. This order was shipped on January 10, Year 2. The company made the following entry in Year 1.Accounts Receivable 48,000 Sales Revenue 48,0002.Prepare the adjusting entry for following items on December 31 of the current year.1. The prepaid insurance account shows a debit of $6,000, representing the cost of a 2-year casualty insurance policy dated September 1 of the current year.2. On November 1, Rent Revenue was credited for $2,400, representing revenue from a subrental for a 3-month period beginning on that date.3. Purchase of supplies for $800 during the year was recorded in the supplies account. On December 31, supplies of $290 are on hand.4. Interest of $770 has accrued on notes payable.3. December 31, 2015 2014 Cash $ 4,300 $ 3,700 Accounts receivable (net) 22,000 23,400 Inventories 10,000 7,000 Plant assets (net) 75,000 86,000 Total 111,300 120,100 Accounts payable 12,370 11,100 Bonds payable 70,000 70,000 Common stock, $10 par 65,000 59,000 Paid-in capital 10,000 10,000 Retained earnings 24,300 20,600 Net credit sales 100,000 Cost of goods sold 60,350 Net income 14,000InstructionsCompute the following ratios for 2015.(a) Current ratio.(b) Acid-test ratio.(c) Accounts receivable turnover.(d) Inventory turnover.(e) Profit margin on sales.(f) Asset turnover.(g) Return on assets.(h) Return on common stockholdersâ equity.
Our Service Charter
-
Excellent Quality / 100% Plagiarism-Free
We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers. -
Free Revisions
We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed. -
Confidentiality / 100% No Disclosure
We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service. -
Money Back Guarantee
If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit. -
24/7 Customer Support
We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.