Carla Vista Co.'s balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31,2021 Accounts payable Cash $14,340 $9,230 Common stock Accounts receivable 21,700 19,700 Allowance for doubtful accounts Retained earnings (860) 12,230 Inventory 9,980 $43,160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method. Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account Jan. 1 Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 3 Carla Vista purchased $18,210 of inventory on account. 8 Carla Vista sold for $27,000 on account inventory that cost $16,920. 11 Carla Vista sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Carla Vista by First Bank is 3%. Carla Vista collected $23,600 from customers on account 15 17 Carla Vista paid $17,630 on accounts payable. 21 Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3. 24 Carla Vista purchased advertising supplies for $1,440 cash 27 Carla Vista paid other operating expenses, $3,330. 31 Adjustment data: Interest is recorded for the month on the note from January 1 1. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. Acount of advertising supplies on January 31, 2022, reveals that $590 remains unused 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.) 2. 3. 4. (You may want to set up T-accounts to determine ending balances.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to 0 decimal places, e.g. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) CARLA VISTA co. Adjusted Trial Balance Debit Credit $ CARLA VISTA CO. Income Statement $ Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) CARLA VISTA CO. Retained Earnings Statement eTextbook and Media List of Accounts Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 1,250.) CARLA VISTA CO. Balance Sheet Assets Carla Vista Co.'s balance sheet at December 31, 2021, is presented below. Carla Vista Co. Balance Sheet December 31,2021 Accounts payable Cash $14,340 $9,230 Common stock Accounts receivable 21,700 19,700 Allowance for doubtful accounts Retained earnings (860) 12,230 Inventory 9,980 $43,160 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method. Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account Jan. 1 Carla Vista wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). 3 Carla Vista purchased $18,210 of inventory on account. 8 Carla Vista sold for $27,000 on account inventory that cost $16,920. 11 Carla Vista sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Carla Vista by First Bank is 3%. Carla Vista collected $23,600 from customers on account 15 17 Carla Vista paid $17,630 on accounts payable. 21 Carla Vista received payment in full ($300) from Drake Company on the account written off on January 3. 24 Carla Vista purchased advertising supplies for $1,440 cash 27 Carla Vista paid other operating expenses, $3,330. 31 Adjustment data: Interest is recorded for the month on the note from January 1 1. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. Acount of advertising supplies on January 31, 2022, reveals that $590 remains unused 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.) 2. 3. 4. (You may want to set up T-accounts to determine ending balances.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to 0 decimal places, e.g. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Date Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) CARLA VISTA co. Adjusted Trial Balance Debit Credit $ CARLA VISTA CO. Income Statement $ Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) CARLA VISTA CO. Retained Earnings Statement eTextbook and Media List of Accounts Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 1,250.) CARLA VISTA CO. Balance Sheet Assets