Current Attempt in Progress     The current assets and current liabilities sections of the balance sheet of TealCompany appear as follows. TEAL COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash       $ 41,700   Accounts payable   $  65,040 Accounts receivable   $96,400       Notes payable   70,200     Less: Allowance for doubtful accounts   7,080   89,320       $135,240 Inventory       177,510         Prepaid expenses       8,980                 $317,510         The following errors in the corporation’s accounting have been discovered: 1.   January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $43,500, on which a cash discount of 2% was taken. 2.   The inventory included $31,970 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,290 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 3.   Sales for the first four days in January 2021 in the amount of $30,560 were entered in the sales journal as of December 31, 2020. Of these, $21,170 were sales on account and the remainder were cash sales. 4.   Cash, not including cash sales, collected in January 2021 and entered as of December 31, 2020, totaled $33,756. Of this amount, $21,756 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. (a1)     Calculate the following adjusted balances. Cash   $ Accounts Receivable   $ Inventory   $ Accounts Payable   $ Notes Payable   $       Save for Later

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Current Attempt in Progress
 
 
The current assets and current liabilities sections of the balance sheet of TealCompany appear as follows.

TEAL COMPANY
BALANCE SHEET (PARTIAL)
DECEMBER 31, 2020
Cash       $ 41,700   Accounts payable   $  65,040
Accounts receivable   $96,400       Notes payable   70,200
    Less: Allowance for doubtful accounts   7,080   89,320       $135,240
Inventory       177,510        
Prepaid expenses       8,980        
        $317,510        

The following errors in the corporation’s accounting have been discovered:

1.   January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $43,500, on which a cash discount of 2% was taken.
2.   The inventory included $31,970 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,290 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3.   Sales for the first four days in January 2021 in the amount of $30,560 were entered in the sales journal as of December 31, 2020. Of these, $21,170 were sales on account and the remainder were cash sales.
4.   Cash, not including cash sales, collected in January 2021 and entered as of December 31, 2020, totaled $33,756. Of this amount, $21,756 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

(a1)

 
 
Calculate the following adjusted balances.

Cash
 
$
Accounts Receivable
 
$
Inventory
 
$
Accounts Payable
 
$
Notes Payable
  $
 
 
 
Save for Later
 
 

 

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