Carla Vista Co.'s balance sheet at December 31.2021, is presented below.Carla Vista Co.Balance SheetDecember 31, 2021$9,230Accounts payableCommon stockCash$14,340Accounts receivable19,70021,700Allowance for doubtful accounts(860)Retained earnings12.230Inventory9,980$43.160$43,160During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method.Jan.Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account.1.3Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300).Carla Vista purchased $18,210 of inventory on account.Carla Vista sold for $27,000 on account inventory that cost $16,920.Carla Vista sold inventory that cost $680 to Jack Rice for $90O. Rice charged this amount on his Visa First Bank card. Theservice fee charged Carla Vista by First Bank is 3%.111517Carla Vista collected $23,600 from customers on account.Carla Vista paid $17,630 on accounts payable.Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3.2124Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account.3Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300).8Carla Vista purchased $18.210 of inventory on account.11Carla Vista sold for $27,000 on account inventory that cost $16,920.Carla Vista sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. Theservice fee charged Carla Vista by First Bank is 3%,Carla Vista collected $23,600 from customers on account.151721Carla Vista paid $17,630 on accounts payable.24Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3.27Carla Vista purchased advertising supplies for $1,440 cash.31Carla Vista paid other operating expenses, $3,330.Adjustment data:1.Interest is recorded for the month on the note from January 1.2.Bad debts are expected to be 6% of the January 31, 2022, accounts receivable.A count of advertising supplies on January 31, 2022, reveals that $590 remains unused.The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to3.4.compute the amount; round to whole dollars.)(You may want to set up T-accounts to determine ending balances.)CARLA VISTA CO.Adjusted Trial BalanceJanuary 31, 2022DebitCredit24TotalsPrepare an income statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)CARLA VISTA CO.Income StatementFor the Month Ending January 31, 2022 :Sales Revenues27900Cost of Goods Sold17600Gross Profit10300Operating ExpensesService Charge ExpenseOther Operating Expermes3300Bad Debts ExpenseSupplies Expense850Operating Expenses4845Income From Operations5455850Supplies Expense-4845Operating Expenses5455Income From Operations24Interest Reverue5479income Before Income Taxes-1644Income Tax Expense3835Net Income/(Loss)Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to O decimal places, e.g.1,250.)CARLA VISTA CO.Retained Earnings StatementJanuary 31, 2022$Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0decimal places, e.g. 1,250.)CARLA VISTA CO.Balance SheetAssetsLiabilities and Stockholders' EquityLiabilities and Stockholders' Equity

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Carla Vista Co's balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,340 Accounts payable $9,230 Accounts receivable 19,700 Common stock 21,700 Allowance for doubtful accounts (860) Retained earnings 12,230 Inventory 9,980 $43,160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method.

Carla Vista Co's balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,340 Accounts payable $9,230 Accounts receivable 19,700 Common stock 21,700 Allowance for doubtful accounts (860) Retained earnings 12,230 Inventory 9,980 $43,160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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