Below are some Financial Accounting Questions I have.
The adjusted trial balance of Full Spectrum Color Laboratory at June 30, 19X9, after all adjustments, follows...
Full Spectrum Color Laboratory
Adjusted Trial Balance
June 30, 19X9
Cash..............................................................................$19, 350
Accounts receivable................................................... 26, 470
Supplies ........................................................................31, 290
Prepaid insurance .........................................................3, 200
Equipment .................................................................. 55, 800
Accumulated Depriciation - equipment.............................. 16,
480
Building........................................................................114, 900
Accumulated Depreciation - building.................................
16, 850
Land.................................................................................30, 000
Accounts payable........................................................................ 38, 400
Interest payable.............................................................................. 1, 490
Wages payable................................................................................. 770
Unearned Service Revenue...................................................... 2, 300
Note payable, long term............................................................ 97, 000
Frank Santos, capital.................................................................. 68, 390
Frank Santos, withdrawals....................................... 45, 300
Service Revenue........................................................................ 139, 860
Depreciation Expense - equipment........................... 7, 300
Depreciation Expense - building........................... 3, 970
Wage expense............................................................ 21, 470
Insurance Expense.........................................................3, 100
Interest Expense......................................................... 11, 510
Utilities expense............................................................ 4, 300
Supplies expense............................................................3, 580
Total........................................................................... $381, 540 $381, 540
Adjusting data at June 30, 19X9, which have all been incorporated into the adjusted trail balance figures:
Depreciation for the year: equipment, $7, 300;
building, $3, 970.
Supplies used during the year, $3, 580.
Prepaid insurance expired during the year, $3, 100.
Accrued interest expense, $690.
Accrued service expense, $940.
Unearned service revenue earned during the year, $7,790.
Accrued wage expense, $770.
Journalize the adjusting entries that would lead to the adjusted trial balance shown here. Also journalize the closing entries.
Prepare Full Spectrum Color Laboratory's income statement and statement of owner's equity for the year ended June 30, 19X9, and the classified balance sheet on that date. Use the account format for the balance sheet.
Compute Full Spectrum Color Laboratory's current ratio and debt ratio at June 30, 19X9. One year ago, the current ratio stood at 1.01 and the debt ratio was 0.71. Did Full Spectrum's ability to pay debts improve or deteriorate during fiscal year 19X9?