Chapter 8, Problem 8.1CACR

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Note receivable:

Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or, borrower to the lender or creditor. Notes receivable is an asset of a business.

To prepare: Journal and adjusting entries in the books of Company W, to record the transactions of January month.

(b)

To determine

To prepare: An adjusted trial balance at January 31, 2019 for Company W.

(c)

To determine

To prepare: An income statement, a retained earnings statement for the month ending of January 31, 2019, and a classified balance sheet as of January 31, 2019.