Gaze Co. Adjusted Trial Balance at 31 December 2019 Debit Credit ...
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Accounting
Gaze Co.
Adjusted Trial Balance
at 31 December 2019
Debit Credit
Cash 51,402
Accounts receivable 2,400
Office supplies 600
Prepaid rent 1,440
Office equipment 64,800
Accumulated depreciation: office equipment 42,300
Accounts payable 1,680
Interest payable 432
Income taxes payable 2,100
Unearned revenue 10,800
Capital stock 36,000
Retained earnings 9,600
Dividends 1,200
Consulting services revenue 72,000
Office supplies expense 726
Depreciation expense: office equipment 9,900
Rent expense 1,212
Salaries expense 32,520
Interest expense 432
Income taxes expense 8,280
Totals 174,912 174,912
Instructions:
Using Adjusted Trial Balance above, perform the following tasks:
(5) Prepare an after-closing trial balance dated December 31, 2019 (10 points).
(6) Does the company appear to be liquid? Explain. Justify your conclusion with calculation of working capital and current ratio (15 points).
(7) Has the company been profitable in the past? What about this year? Justify your conclusion with calculation of net income percentage and return on equity (15 points).
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