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Problem 2: Using T-Accounts, Preparing the Balance Sheet, and Computing and Interpreting the Current Ratio.
To complete this problem, you may wish to use the T-Account Transactions Template, which is linked in the Resources under the Capella Resources heading.
Johnson Company has been operating for several years. At December 31, 2012, the accounting records reflected the following data, shown in the table below:
Johnson Company Financial Data
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Account Amount
Cash $9,000
Investments (short-term) $4,000
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