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The current assets and current liabilities sections of the balance sheet of Concord Company appear as follows. Concord Company Balance Sheet (Partial) December 31, 2025 Cash $41,300 Accounts payable $58,430 Accounts receivable $96,300 Notes payable 63,280 Less: Allowance for doubtful accounts 7,840 88,460 $121,710 Inventory 169,820 Prepaid expenses 8,620 $308,200 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of $41,800, on which a cash discount of 2% was taken. The inventory included $28,590 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,340 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first four days in January 2026 in the amount of $28,680 were entered in the sales journal as of December 31, 2025. Of these, $21,510 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. (a) Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) Concord Company Balance Sheet (Partial) : Asset +A +A Liabilities and Stockholders' Equity $ LA

The current assets and current liabilities sections of the balance sheet of Concord Company appear as follows. Concord Company Balance Sheet (Partial) December 31, 2025 Cash $41,300 Accounts payable $58,430 Accounts receivable $96,300 Notes payable 63,280 Less: Allowance for doubtful accounts 7,840 88,460 $121,710 Inventory 169,820 Prepaid expenses 8,620 $308,200 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of $41,800, on which a cash discount of 2% was taken. The inventory included $28,590 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,340 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first four days in January 2026 in the amount of $28,680 were entered in the sales journal as of December 31, 2025. Of these, $21,510 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. (a) Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) Concord Company Balance Sheet (Partial) : Asset +A +A Liabilities and Stockholders' Equity $ LA

FINANCIAL ACCOUNTING
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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The current assets and current liabilities sections of the balance sheet of Concord Company appear as follows. Concord Company Balance Sheet (Partial) December 31, 2025 Cash $41,300 Accounts payable $58,430 Accounts receivable $96,300 Notes payable 63,280 Less: Allowance for doubtful accounts 7,840 88,460 $121,710 Inventory 169,820 Prepaid expenses 8,620 $308,200 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of $41,800, on which a cash discount of 2% was taken. The inventory included $28,590 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,340 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first four days in January 2026 in the amount of $28,680 were entered in the sales journal as of December 31, 2025. Of these, $21,510 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. (a) Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.)
Transcribed Image Text:The current assets and current liabilities sections of the balance sheet of Concord Company appear as follows. Concord Company Balance Sheet (Partial) December 31, 2025 Cash $41,300 Accounts payable $58,430 Accounts receivable $96,300 Notes payable 63,280 Less: Allowance for doubtful accounts 7,840 88,460 $121,710 Inventory 169,820 Prepaid expenses 8,620 $308,200 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. January 2026 cash disbursements entered as of December 2025 included payments of accounts payable in the amount of $41,800, on which a cash discount of 2% was taken. The inventory included $28,590 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,340 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first four days in January 2026 in the amount of $28,680 were entered in the sales journal as of December 31, 2025. Of these, $21,510 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2026 and entered as of December 31, 2025, totaled $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. (a) Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.)
Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) Concord Company Balance Sheet (Partial) : Asset +A +A Liabilities and Stockholders' Equity $ LA
Transcribed Image Text:Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) Concord Company Balance Sheet (Partial) : Asset +A +A Liabilities and Stockholders' Equity $ LA
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