The following trial balance was taken from the books of Panda Corporation on

Question 1The following trial balance was taken from the books of Panda Corporation onDecember 31, 2014.AccountCashDebitCredit$ 8,000Accounts Receivable40,000Notes Receivable10,000Allowance for Doubtful AccountsInventoryPrepaid InsuranceEquipment$ 1,80044,0004,800110,000Accumulated Depreciation–Equip.15,000Accounts Payable10,800Common Stock43,000Retained Earnings75,000Sales Revenue260,000Cost of Goods Sold126,000Salaries and wages Expense50,000Rent ExpenseTotals12,800$405,600$405,600At year end, the following items have not yet been recorded.a.Insurance expired during the year, $2,400.b.Depreciation on equipment, 10% per year (straight line without salvage value).c. Accrued salaries and wages (unpaid) at December 31, $8,500.Instructions:(a) (6 Points) Prepare the necessary adjusting entries.(b) (2 Points) Calculate the net income for 2015.(c) (2 Points) Prepare the necessary closing entries.Please show your procedures.Question 2The following data is given:December 31,2015Cash$ 66,000Accounts receivable (net)2014$ 50,00090,00060,000Inventories90,000110,000Plant assets (net)283,000225,00055,00040,000Accounts payableSalaries and wages payable10,000Bonds payable70,000Common stock, $10 par120,000Paid-in capital in excess of par80,000Retained earnings194,000Net credit sales900,000Cost of goods sold700,000Net income81,000InstructionsCompute the following ratios:(a)Accounts receivable turnover in 2015 (2 points)(b)Inventory turnover in 2015 (2 points)(c)Payout ratio in 2015 (2 points)(d)Return on common stock equity in 2015 (2 points)(e)Debt to asset ratio in 2015 (2 points)Please show your procedures.5,00070,00090,00065,000175,000

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