Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please show me how to answer this. Thank you! Exercise 5-9 (Part Level Submission) The current assets and current liabilities sections of the

Can you please show me how to answer this. Thank you!

Exercise 5-9 (Part Level Submission) The current assets and current liabilities sections of the balance sheet of Cheyenne Company appear as follows. CHEYENNE COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Cash $ 40,100 Accounts payable $ 59,850 Accounts receivable $89,200 Notes payable 60,600 Less: Allowance for doubtful accounts 8,330 80,870 $120,450 Inventory 161,250 Prepaid expenses 9,400 $291,620 The following errors in the corporations accounting have been discovered: 1. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $41,500, on which a cash discount of 2% was taken. 2. The inventory included $31,670 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,240 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 2018 in the amount of $30,970 were entered in the sales journal as of December 31, 2017. Of these, $19,780 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2018 and entered as of December 31, 2017, totaled $36,598. Of this amount, $24,598 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

Calculate the following adjusted balances. Cash $

Accounts Receivable $

Inventory $

Accounts Payable $

Notes Payable $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Performance, Risk And Firm Financing

Authors: P. Molyneux

1st Edition

0230313353, 9780230313354

More Books

Students also viewed these Accounting questions