Davis, Capital, December 1, 2014 $ 0 contribution 18,000 Net income for the month 1,800 $ 19,800 Owner withdrawal (1,400) Davis, Capital, December 31, 2014 $ 18,400 Requirement 7 DAVIS CONSULTING Balance December 31, 2014 Assets Liabilities Cash $ 16,400 Accounts Payable $ 4,700 Accounts Receivable 1,200 Unearned Revenue 1,400 Office Supplies 900 Total Liabilities $ 6,100 Equipment 1,800 Furniture 4,200 Owner's Equity Davis, Capital $ 18,400 Total Assets $ 24,500 Total Liabilities and Owner's Equity $ 24,500 Requirement 8 Debt ratio = Total liabilities / Total assets = $6,100 / $24,500 = 0.25* = 25% * rounded Practice Set P2-44 Requirement 1 Posting Date Accounts and Explanation Ref. Credit Nov. 1 Cash 35,000 8,000
Davis, Capital, December 1, 2014 $ 0 contribution 18,000 Net income for the month 1,800 $ 19,800 Owner withdrawal (1,400) Davis, Capital, December 31, 2014 $ 18,400 Requirement 7 DAVIS CONSULTING Balance December 31, 2014 Assets Liabilities Cash $ 16,400 Accounts Payable $ 4,700 Accounts Receivable 1,200 Unearned Revenue 1,400 Office Supplies 900 Total Liabilities $ 6,100 Equipment 1,800 Furniture 4,200 Owner's Equity Davis, Capital $ 18,400 Total Assets $ 24,500 Total Liabilities and Owner's Equity $ 24,500 Requirement 8 Debt ratio = Total liabilities / Total assets = $6,100 / $24,500 = 0.25* = 25% * rounded Practice Set P2-44 Requirement 1 Date Accounts and Explanation Posting Ref. Credit Nov. 1 Cash 35,000 8,000
Solution-Manual-and-Working-Paper-Answers-for-Horngren-s-Accounting-10E-10th-Edition.docx