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22 July, 02:46

Sandra Sousa, Registered Dietician Trial Balance July 31, 2018 Balance Account Title Debit Credit Cash 33000 Accounts Receivable 9600 Office Supplies 2200 Prepaid Insurance 2800Equipment 18000Accounts Payable 3100Unearned Revenue 292Notes Payable 34000Sousa, Capital 22000Sousa, Withdrawals 2000 Service Revenue 11258 Salaries Expense 1500Rent Expense 1200 Utilities Expense 350Total $ Net Inoome 70,650 70,650Requirement1. Prepare the income statement for the month ended July 31, 2018, Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018. Requirement 3. Prepare the balance sheet &s of July 31, 2018. Requirement 4. Calculate the debt ratio as of July 31, 2018 70,650 $ 70,650 Select the debt ratio formula on the first line and then calculate the ratio - Debt ratio

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  1. 22 July, 02:58
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    Requirement 1. Prepare the income statement for the month ended July 31, 2018.

    Sandra Sousa, Registered Dietitian

    Income Statement

    For the Month Ended July 31, 2018

    Service Revenue $11,258

    Salaries Expense - $1,500

    Rent Expense - $1,200

    Utilities Expense - $350

    Net income $8,208

    Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018.

    Sandra Sousa, Registered Dietitian

    Statement of Owner's Equity

    For the Month Ended July 31, 2018

    Sousa, Capital balance July 1, 2018 $22,000

    Investment during month $0

    Net income $8,208

    subtotal $30,208

    Withdrawals during the month - $2,000

    Sousa, Capital balance July 31, 2018 $28,208

    Requirement 3. Prepare the balance sheet &s of July 31, 2018.

    Sandra Sousa, Registered Dietitian

    Balance Sheet

    For the Month Ended July 31, 2018

    Assets:

    Cash $33,000

    Accounts Receivable $9,600

    Office Supplies $2,200

    Prepaid Insurance $2,800

    Equipment $18,000

    Total assets $65,600

    Liabilities and equity:

    Accounts Payable $3,100

    Unearned Revenue $292

    Notes Payable $34,000

    Sousa, Capital $22,000

    Retained earnings $6,208

    Total liabilities and equity $65,600

    Requirement 4. Calculate the debt ratio as of July 31, 2018.

    debt ratio = liabilities / assets = $65,600 / $37,392 = 175.44%

    debt to equity ratio = liabilities / equity = $37,392 / $28,208 = 132.56%
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