Adjustment data:

1.		Interest is recorded for the month on the note from January 1.
2.		Bad debts are expected to be 6% of the January 31, 2022, accounts receivable.
3.		A count of advertising supplies on January 31, 2022, reveals that $550 remains unused.
4.		The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.)

(You may want to set up T-accounts to determine ending balances.)

Sunland Company's balance sheet at December 31, 2021, is presented below. Sunland Company Balance Sheet December 31, 2021 Cash $13,380 Accounts payable $8,160 Accounts receivable 19,800 Common stock 21,000 Allowance for doubtful accounts (800) Retained earnings 12,770 Inventory 9,550 $41,930 $41,930 During January 2022, the following transactions occurred. Sunland uses the perpetual inventory method. Jan. 1 Sunland accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account. 3 Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($200). 8 Sunland purchased $15,780 of inventory on account. 11 Sunland sold for $25,600 on account inventory that cost $16,550. 15 Sunland sold inventory that cost $650 to Jack Rice for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bank is 3%. 17 Sunland collected $21,100 from customers on account. 21 Sunland paid $15,360 on payable. 24 Sunland received payment in full ($200) from Drake Company on the account written off on January 3. 27 Sunland purchased advertising supplies for $1,450 cash. 31 Sunland paid other operating expenses, $3,230. Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable Accounts Receivable Jan. 3 Allowance for Doubtful Accounts Allowance for Doubtful Accounts Jan. B Inventory Accounts Payable Jan. 11 Cost of Goods Sold Inventory (To record sales revenues.) Jan 11 Cost of Goods Sold Inventory (To record cost of goods sold.) Jan. 15 Cash Service Charge Expense Sales Revenue (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold Inventory (To record cost of goods sold.) Jan. 17 Cash Accounts Receivable Jan. 21 : Accounts Payable Cash Jan. 24 Accounts Receivable Allowance for Doubtful Accounts (To reverse allowance for doubtful debts.) Jan. 24 Cash Accounts Receivable (To record cash received from Drake Company.) Jan. 27 Supplies Cash Jan. 31 : Other Operating Expenses Cash (To reverse allowance for doubtful debts.) Jan. 24 Cash Accounts Receivable (To record cash received from Drake Company.) Jan. 27 : Supplies Cash Jan. 31 Other Operating Expenses Cash Jan. 31 (1) Bad Debts Expense Interest Revenue (2) Bad Debts Expense Allowance for Doubtful Accounts (3) Supplies Expense Supplies (4) Income Tax Expense Income Taxes Payable SUNLAND COMPANY Adjusted Trial Balance Debit Credit $ $ + $ LINE $ Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) SUNLAND COMPANY Retained Earnings Statement + $ eTextbook and Media List of Accounts X Your answer is incorrect. Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to O decimal places, e.g. 1,250.) SUNLAND COMPANY Balance Sheet Assets Balance Sheet Assets $ Liabilities and Stockholders' Equity $