Instructions (a) Please create a classified balance sheet in good form for the year ended 2012. (25 points) (b) Please calculate the current ratio. (5 points)
Question 12. Question : (TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts.
Debit Credit Sales $575,000 Sales returns and allowances $ 50,000 Sales discounts 9,500 Cost of goods sold 347,000
Instructions: 1: Use the above information to prepare a multiple-step income statement for the year ended December 31, 2010. 2: Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you must state the formula you are using, show your computations, and explain your findings.
Question 11. Question : (TCO D) A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him or her understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses).
11. Question : (TCO D) Describe the process of preparing a trial balance. What is the purpose of preparing a trial balance? If a trial balance does not balance, identify what might be the reasons why it does not balance. If the trial balance does balance, does that ensure that the ledger accounts are correct? Explain.
1. Question : (TCO D) An account is an important accounting record where financial