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

Problem 1Q

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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		$

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