Design La cut Nermal ] No Spac Heading 1 Heading 2 Title Paragraph for the year
ID: 2565148 • Letter: D
Question
Design La cut Nermal ] No Spac Heading 1 Heading 2 Title Paragraph for the year ending December 31, 2012 to answer questions 5: Accounts payable Accounts receivable Accumulated depreciation Advertising expense Cash S 10,000 11,000 - equipment 28,000 21,000 14,000 105,000 14,000 12,000 3,000 Owner's capital (1/1/12) Owner's drawings Depreciation expense Insurance expense Note payable, due 6/30/13 Prepaid insurance (6-month policy) Rent expense Salaries and wages xpense Service revenue Supplies Supplies expense Equipment (Long-term) 5,000 6,000 17,000 32,000 125,000 ,000 6,000 210,000 What is the Working Capital of the Postal Service at December 31, 2012? $16,000Explanation / Answer
Answer:
Working Capital
(current assets-current Liability)
20,000
Working notes for the above answer is as under
Current asset
Account Receivable
11,000
Cash
14000
Prepaid Insurance
6000
Supplies
4000
Total Current asset (A)
35,000
current Liability
Account Payable
10,000
Notes payable
5,000
Total current Liability (B)
15,000
Working capital (a-B)
20,000
Working Capital
(current assets-current Liability)
20,000