CHAPTER 11 Current Liabilities and Payroll Accounting Instructor Solutions Manual, Searchable 48 page pdf
CHAPTER 11 COMPREHENSIVE PROBLEM SOLUTION, CURRENT LIABILITIES AND PAYROLL ACCOUNTING
Examples:
Unearned Basketball Ticket Revenue
Basketball Ticket Revenue
RIVERA COMPANY
WARKENTINNE COMPANY
Jewett Online Company’s working capital is $147,000 and its current
ratio is 1.96:1. Although a current ratio of 2:1 has been considered the
standard for a good credit rating, many companies operate successfully
with a current ratio below 2:1.
PepsiCo’s largest current liability was “accounts payable” at $2,562 million.
Its total current liabilities were $7,753 million. Coca-Cola’s largest current
liability was “accounts payable and accrued expenses” at $6,915 million.
Its total current liabilities were $13,225 million.
METCALFE SERVICES INC.
Kensingtown Processing Company would save $3,088 ($47,188 – $44,100),
as shown, by discharging the two employees and accepting the Metcalfe
Services Inc. plan.