The current assets and current liabilities sections of the balance sheet of Blossom Co. appear as follows. Blossom Co. Balance Sheet (Partial) As of December 31, 2017 Cash $17,100 Accounts payable $27,700 Accounts receivable $40,100 Notes payable 13,600 Less: Allowance for doubtful accounts 1,300 38,800 Unearned revenue 2,600 Inventory 63,300 Total current liabilities $43,900 Prepaid expenses 7,200 Total current assets $126,400 The following errors in the corporation’s accounting have been discovered: 1. Keane collected $3,800 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue. 2. The inventory amount reported included $3,000 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $2,400 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 3. Sales for the first day in January 2018 in the amount of $10,900 were entered in the sales journal as of December 31, 2017. Of these, $6,200 were sales on account and the remainder were cash sales. 4. Cash, collected in December 2017, but entered as received in January 2018 totaled $2,800. Of this amount, $1,862 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. 5. Cash of $3,500 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018. 6. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $7,400, on which a cash discount of 1% was taken. Calculate the following adjusted balances. Cash Accounts Receivable Inventory Accounts Payable Notes Payable Unearned Revenue

The current assets and current liabilities sections of the balance sheet of Blossom Co. appear as follows. Blossom Co. Balance Sheet (Partial) As of December 31, 2017 Cash $17,100 Accounts payable $27,700 Accounts receivable $40,100 Notes payable 13,600 Less: Allowance for doubtful accounts 1,300 38,800 Unearned revenue 2,600 Inventory 63,300 Total current liabilities $43,900 Prepaid expenses 7,200 Total current assets $126,400 The following errors in the corporation’s accounting have been discovered: 1. Keane collected $3,800 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue. 2. The inventory amount reported included $3,000 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $2,400 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 3. Sales for the first day in January 2018 in the amount of $10,900 were entered in the sales journal as of December 31, 2017. Of these, $6,200 were sales on account and the remainder were cash sales. 4. Cash, collected in December 2017, but entered as received in January 2018 totaled $2,800. Of this amount, $1,862 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. 5. Cash of $3,500 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018. 6. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $7,400, on which a cash discount of 1% was taken. Calculate the following adjusted balances. Cash Accounts Receivable Inventory Accounts Payable Notes Payable Unearned Revenue

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 Blossom Co. appear as follows.

Blossom Co. Balance Sheet (Partial) As of December 31, 2017
Cash		$17,100	Accounts payable	$27,700
Accounts receivable	$40,100		Notes payable	13,600
Less: Allowance for doubtful accounts	1,300	38,800	Unearned revenue	2,600
Inventory		63,300	Total current liabilities	$43,900
Prepaid expenses		7,200
Total current assets		$126,400

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

1.		Keane collected $3,800 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue.
2.		The inventory amount reported included $3,000 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $2,400 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3.		Sales for the first day in January 2018 in the amount of $10,900 were entered in the sales journal as of December 31, 2017. Of these, $6,200 were sales on account and the remainder were cash sales.
4.		Cash, collected in December 2017, but entered as received in January 2018 totaled $2,800. Of this amount, $1,862 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales.
5.		Cash of $3,500 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018.
6.		January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $7,400, on which a cash discount of 1% was taken.

Calculate the following adjusted balances.

Cash
Accounts Receivable
Inventory
Accounts Payable
Notes Payable
Unearned Revenue

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