Question

Pearl Corporation has the following list of accounts and balances after posting its closing entries: Pearl Corporation Trial Balance December 31, 2023 Debit Credit Cash $24,500 Accounts receivable 5,400 Supplies 850 Prepaid insurance 2,100 Building 40,500 Accumulated depreciation-building $7,500 Equipment 22,300 Accumulated depreciation-equipment 3,400 Accounts payable 6,500 Unearned service revenue 8,400 Salary payable 900 Common shares 50,200 Retained earnings ______ 18,750 $95,650 $95,650 Required Calculate the current ratio and the debt ratio. Assume the unearned service revenue will be earned within six months. Round to two decimals. Assume on December 31, 2023, Pearl Corporation borrows $50,000 from the First Street Bank and issues a 6%, 6-month note. Recalculate the current ratio and the debt ratio. Round to two decimals.

          Pearl Corporation has the following list of accounts and balances after posting its closing entries:
                                                      Pearl Corporation
                                                           Trial Balance
                                                     December 31, 2023
                                                                                             Debit                            Credit
Cash                                                                               $24,500
Accounts receivable                                                         5,400
Supplies                                                                                850
Prepaid insurance                                                             2,100
Building                                                                            40,500
Accumulated depreciation-building                                 $7,500
Equipment                                                                        22,300
Accumulated depreciation-equipment                                                                  3,400
Accounts payable                                                                                                  6,500
Unearned service revenue                                                                                    8,400
Salary payable                                                                                                          900
Common shares                                                                                                   50,200
Retained earnings                                                           ______                           18,750
                                                                                        $95,650                         $95,650
Required
Calculate the current ratio and the debt ratio. Assume the unearned service revenue will be earned within six months. Round to two decimals.
Assume on December 31, 2023, Pearl Corporation borrows $50,000 from the First Street Bank and issues a 6%, 6-month note. Recalculate the current ratio and the debt ratio. Round to two decimals.

Added by Ryan K.

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