From the following Company R adjusted trial balance, prepare the following:

B. Retained Earnings Statement

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}44,000}\\ \text{Accounts Receivable}&\text{\hspace{10pt}13,800}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}6,400}\\ \text{Land}&\text{\hspace{10pt}16,000}\\ \text{Accounts Payable}&&\text{\$\hspace{5pt}14,900}\\ \text{Salaries Payable}&&\text{\hspace{15pt}4,500}\\ \text{Common Stock}&&\text{\hspace{10pt}31,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}10,200}\\ \text{Dividends}&\text{\hspace{10pt}12,000}\\ \text{Service Revenue}&&\text{\hspace{10pt}86,000}\\ \text{Insurance Expense}&\text{\hspace{15pt}7,600}\\ \text{Salaries Expense}&\text{\hspace{10pt}32,000}\\ \text{Miscellaneous Expense}&\underline{\text{\hspace{10pt}14,800}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}146,600}}}&\underline{\underline{\text{\$\hspace{1pt}146,600}}}\\ \end{array}$$

List the errors you find in the following balance sheet. Prepare a corrected balance sheet.

$$\begin{array}{lrlr} \text { Accounts Payable } & \$ 18,500 & \text { Prepaid Insurance } & \$ 19,200 \\ \text { Accounts Receivable } & 78,250 & \text { Prepaid Rent } & 18,000 \\ \text { Accumulated Depreciation-Equipment } & 103,300 & \text { Retained Earnings } & 509,000 \\ \text { Capital Stock } & 100,000 & \text { Salaries Payable } & 8,500 \\ \text { Cash } & ? & \text { Supplies } & 5,350 \\ \text { Equipment } & 300,000 & \text { Unearned Fees } & 9,000 \\ \text { Land } & 290,000 & & \end{array}$$

Using the following account balances, calculate for the two years presented:

A. working capital

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Unearned Revenue}&\text{\$\hspace{1pt}12,600}&\text{\$\hspace{5pt}6,000}\\ \text{Cash}&\text{\hspace{5pt}33,200}&\text{\hspace{5pt}12,750}\\ \text{Prepaid Rent}&\text{\hspace{10pt}9,000}&\text{\hspace{10pt}6,000}\\ \text{Supplies}&\text{\hspace{10pt}5,600}&\text{\hspace{10pt}2,500}\\ \text{Taxes payable}&\text{\hspace{10pt}4,800}&\text{\hspace{10pt}5,500}\\ \text{Wages payable}&\text{\hspace{10pt}8,500}&\text{\hspace{10pt}9,250}\\ \end{array}$$

Using the following account balances, calculate for the two years presented:

A. working capital

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Accounts Payable}&\text{\$\hspace{1pt}12,790}&\text{\$\hspace{1pt}1,530}\\ \text{Accounts Receivable}&\text{\hspace{5pt}16,330}&\text{\hspace{5pt}2,200}\\ \text{Cash}&\text{\hspace{5pt}21,040}&\text{\hspace{5pt}5,550}\\ \text{Prepaid Insurance}&\text{\hspace{10pt}4,500}&\text{\hspace{5pt}1,200}\\ \text{Salaries payable}&\text{\hspace{10pt}6,500}&\text{\hspace{5pt}4,000}\\ \text{Utilities payable}&\text{\hspace{10pt}1,200}&\text{\hspace{12pt}550}\\ \end{array}$$

Using the following account balances, calculate for the two years presented:

A. working capital

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Accounts payable}&\text{\$\hspace{1pt}45,000}&\text{\$\hspace{1pt}12,600}\\ \text{Accounts receivable}&\text{\hspace{5pt}52,000}&\text{\hspace{5pt}15,200}\\ \text{Cash}&\text{\hspace{5pt}11,500}&\text{\hspace{5pt}19,780}\\ \text{Prepaid insurance}&\text{\hspace{10pt}1,060}&\text{\hspace{10pt}2,400}\\ \text{Salaries payable}&\text{\hspace{10pt}9,400}&\text{\hspace{5pt}12,800}\\ \text{Utilities payable}&\text{\hspace{10pt}3,500}&\text{\hspace{10pt}2,550}\\ \end{array}$$

Using the following account balances, calculate for the two years presented:

B. current ratio

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Accounts payable}&\text{\$\hspace{1pt}2,000}&\text{\$\hspace{5pt}6,120}\\ \text{Accounts receivable}&\text{\hspace{5pt}3,000}&\text{\hspace{10pt}8,450}\\ \text{Cash}&\text{\hspace{5pt}4,500}&\text{\hspace{5pt}18,600}\\ \text{Prepaid advertising}&\text{\hspace{5pt}1,200}&\text{\hspace{10pt}4,000}\\ \text{Utilities payable}&\text{\hspace{12pt}950}&\text{\hspace{10pt}6,500}\\ \text{Wages payable}&\text{\hspace{5pt}1,675}&\text{\hspace{10pt}8,600}\\ \end{array}$$

Using the following account balances, calculate for the two years presented:

B. current ratio

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Unearned Revenue}&\text{\$\hspace{1pt}12,600}&\text{\$\hspace{5pt}6,000}\\ \text{Cash}&\text{\hspace{5pt}33,200}&\text{\hspace{5pt}12,750}\\ \text{Prepaid Rent}&\text{\hspace{10pt}9,000}&\text{\hspace{10pt}6,000}\\ \text{Supplies}&\text{\hspace{10pt}5,600}&\text{\hspace{10pt}2,500}\\ \text{Taxes payable}&\text{\hspace{10pt}4,800}&\text{\hspace{10pt}5,500}\\ \text{Wages payable}&\text{\hspace{10pt}8,500}&\text{\hspace{10pt}9,250}\\ \end{array}$$

Assuming the following Adjusted Trial Balance, create the Post-Closing Trial Balance that would result, after all closing journal entries were made and posted:

$$\begin{array}{c} \textbf{Adjusted Trial Balance} \end{array}$$

$$\begin{array}{lcc} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Cash}&\text{\$\hspace{5pt}22,900}\\ \text{Prepaid Insurance}&\text{\hspace{15pt}4,000}\\ \text{Fixed Assets}&\text{\hspace{10pt}44,000}\\ \text{Notes Payable}&&\text{\$\hspace{5pt}40,000}\\ \text{Common Stock}&&\text{\hspace{10pt}25,000}\\ \text{Retained Earnings}&&\text{\hspace{10pt}48,350}\\ \text{Dividends}&\text{\hspace{10pt}22,000}\\ \text{Sales Revenue}&&\text{\hspace{5pt}150,000}\\ \text{Automobile Expense}&\text{\hspace{10pt}26,500}\\ \text{Insurance Expense}&\text{\hspace{10pt}20,000}\\ \text{Salaries Expense}&\text{\hspace{5pt}122,500}\\ \text{Supplies Expense}&\underline{\text{\hspace{15pt}1,450}}&\underline{\text{\hspace{39pt}}}\\ &\underline{\underline{\text{\$\hspace{1pt}263,350}}}&\underline{\underline{\text{\$\hspace{1pt}263,350}}}\\ \end{array}$$

Assume that the first two closing entries have been made and posted. Use the T-accounts provided as follows to:

B. determine the ending balance in the Retained Earnings account

Using the following Balance Sheet summary information, for the two years presented calculate:

B. current ratio

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Current assets}&\text{\$\hspace{1pt}101,600}&\text{\$\hspace{1pt}97,350}\\ \text{Current liabilities}&\text{\hspace{10pt}33,650}&\text{\hspace{5pt}32,800}\\ \end{array}$$

Using the following Balance Sheet summary information, calculate for the two companies presented:

B. current ratio

$$\begin{array}{lcc} &\textbf{Company N}&\textbf{Company O}\\[5pt] \text{Current assets}&\text{\$\hspace{1pt}124,680}&\text{\$\hspace{1pt}180,550}\\ \text{Current liabilities}&\text{\hspace{10pt}63,250}&\text{\hspace{5pt}153,250}\\ \end{array}$$

Using the following Balance Sheet summary information, calculate for the two years presented:

A. working capital

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Current assets}&\text{\$\hspace{1pt}10,500}&\text{\$\hspace{1pt}12,050}\\ \text{Current liabilities}&\text{\hspace{10pt}7,500}&\text{\hspace{5pt}10,800}\\ \end{array}$$

Using the following Balance Sheet summary information, calculate for the two years presented:

B. current ratio

$$\begin{array}{lcc} &\textbf{Company P}&\textbf{Company Q}\\[5pt] \text{Current assets}&\text{\$\hspace{1pt}88,500}&\text{\$\hspace{1pt}39,000}\\ \text{Current liabilities}&\text{\hspace{5pt}67,430}&\text{\hspace{5pt}18,800}\\ \end{array}$$

Using the following Balance Sheet summary information, for the two years presented calculate:

A. working capital

$$\begin{array}{lcc} &\textbf{12/31/2018}&\textbf{12/31/2019}\\[5pt] \text{Current assets}&\text{\$\hspace{1pt}101,600}&\text{\$\hspace{1pt}97,350}\\ \text{Current liabilities}&\text{\hspace{10pt}33,650}&\text{\hspace{5pt}32,800}\\ \end{array}$$