Cullumber Company’s balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash   $13,310      Accounts payable   $8,900  Accounts receivable   20,100      Common stock   18,800  Allowance for doubtful accounts   (720)     Retained earnings   14,810  Inventory   9,820                $42,510          $42,510  During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1   Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $4,800 account. 3   Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8   Cullumber purchased $15,760 of inventory on account. 11   Cullumber sold for $26,200 on account inventory that cost $18,330. 15   Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. 17   Cullumber collected $21,700 from customers on account. 21   Cullumber paid $15,900 on accounts payable. 24   Cullumber received payment in full ($300) from Drake Company on the account written off on January 3. 27   Cullumber purchased advertising supplies for $1,400 cash. 31   Cullumber paid other operating expenses, $3,260. 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. 3.   A count of advertising supplies on January 31, 2022, reveals that $510 remains unused. 4.   The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) -Prepare a classified balance sheet as of January 31, 2022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cullumber Company’s balance sheet at December 31, 2021, is presented below.

Cullumber Company
Balance Sheet
December 31, 2021
Cash
  $13,310     
Accounts payable
  $8,900 
Accounts receivable
  20,100     
Common stock
  18,800 
Allowance for doubtful accounts
  (720)    
Retained earnings
  14,810 
Inventory
  9,820           
    $42,510          $42,510 


During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method.

Jan. 1   Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $4,800 account.
3   Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300).
8   Cullumber purchased $15,760 of inventory on account.
11   Cullumber sold for $26,200 on account inventory that cost $18,330.
15   Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%.
17   Cullumber collected $21,700 from customers on account.
21   Cullumber paid $15,900 on accounts payable.
24   Cullumber received payment in full ($300) from Drake Company on the account written off on January 3.
27   Cullumber purchased advertising supplies for $1,400 cash.
31   Cullumber paid other operating expenses, $3,260.


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.
3.   A count of advertising supplies on January 31, 2022, reveals that $510 remains unused.
4.   The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.)

-Prepare a classified balance sheet as of January 31, 2022 

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