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Financial Accounting

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Moderate

Balance Sheet: Quick Ratio

FINACT-LCJQJ6

Green Grass Corporation provides the following information at year-end:

Account Titles Adjusted Trial Balance
Debits Credits
Accounts Payable \$40,000
Accounts Receivable \$38,500
Accumulated Depreciation - Building 75,000
Building 200,000
Cash 29,500
Common Stock 28,000
Cost of Goods Sold 190,000
Depreciation Expense 16,650
Income Tax Expense 20,520
Income Tax Payable 20,520
Insurance Expense 15,000
Interest Expense 7,800
Inventory 50,000
Investment Revenue 3,000
Long-term Notes Payable 145,000
Other Current Assets 15,000
Prepaid Expenses 2,450
Rent Expense 26,000
Retained Earnings 97,850
Salaries Expense 75,400
Salaries Payable 8,500
Sales Revenue 270,000
Unearned Revenue 5,000
Utilities Expense 6,050
Totals \$692,870 \$692,870