Cullumber Company's balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash $13,310 Accounts payable Accounts receivable 20,100 Common stock Allowance for doubtful accounts (720) Retained earnings Inventory 9.820 $42,510 $8,900 18,800 14,810 $42,510 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 3 8 11 15 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $4,800 account. Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). Cullumber purchased $15,760 of inventory on account. Cullumber sold for $26,200 on account inventory that cost $18,330. Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. Cullumber collected $21,700 from customers on account Cullumber paid $15,900 on accounts payable, Cullumber received payment in full ($300) from Drake Company on the account written off on January 3, Cullumber purchased advertising supplies for $1,400 cash. Cullumber paid other operating expenses $3,260. 17 21 24 27 31 Adjustment data: 1 2. 3. 4. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2022. accounts receivable. A count of advertising supplies on January 31, 2022. reveals that $510 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.) (You may want to set up T-accounts to determine ending balances.) (To reverse allowance for doubtful debts.) 300 300 Accounts Receivable (To record cash received from Drake Company) Supplies 1400 1400 Other Operating Expenses 3260 Cath 3260 (1) Intere 32 Interest Revenue 32 (2) Bad Debts Expense 340 Allowance for Doubtful Accounts 340 (3) Supplies Expert 890 Supple 990 (4) Income Tax Expense Income Tots Payable CULLUMBER COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit Cash $ 15812 Accounts Receivable 19000 Allowance for Doubtful Accounts Notes Receivable Interest Receivable inven Supplies acc Income Taxes Payable comm retained Sales Revenu Interest Revenue cost serv Income Statement For the Month Ending January 31, 2022 4 Sales Revenues Cost of Goods Sold Gross Pront Operating Expenses Service Chance Expenso $ Other Operating Experts Supplies Exponse Badebts Expense Total Operating Expenses Net Income / Loss) CULLUMBER COMPANY Retained Earnings Statement January 31, 2022 Retained Earnings, January 1 TA Add : Net Income /(Loss) Retained Earnings, January 31 $ CULLUMBER COMPANY Balance Sheet Assets Current Assets $ acc allowance $ Liabilities and Stockholders' Equity $ Cullumber Company's balance sheet at December 31, 2021, is presented below. Cullumber Company Balance Sheet December 31, 2021 Cash $13,310 Accounts payable Accounts receivable 20,100 Common stock Allowance for doubtful accounts (720) Retained earnings Inventory 9.820 $42,510 $8,900 18,800 14,810 $42,510 During January 2022, the following transactions occurred. Cullumber uses the perpetual inventory method. Jan. 1 3 8 11 15 Cullumber accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $4,800 account. Cullumber wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). Cullumber purchased $15,760 of inventory on account. Cullumber sold for $26,200 on account inventory that cost $18,330. Cullumber sold inventory that cost $750 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Cullumber by First Bank is 3%. Cullumber collected $21,700 from customers on account Cullumber paid $15,900 on accounts payable, Cullumber received payment in full ($300) from Drake Company on the account written off on January 3, Cullumber purchased advertising supplies for $1,400 cash. Cullumber paid other operating expenses $3,260. 17 21 24 27 31 Adjustment data: 1 2. 3. 4. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2022. accounts receivable. A count of advertising supplies on January 31, 2022. reveals that $510 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.) (You may want to set up T-accounts to determine ending balances.) (To reverse allowance for doubtful debts.) 300 300 Accounts Receivable (To record cash received from Drake Company) Supplies 1400 1400 Other Operating Expenses 3260 Cath 3260 (1) Intere 32 Interest Revenue 32 (2) Bad Debts Expense 340 Allowance for Doubtful Accounts 340 (3) Supplies Expert 890 Supple 990 (4) Income Tax Expense Income Tots Payable CULLUMBER COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit Cash $ 15812 Accounts Receivable 19000 Allowance for Doubtful Accounts Notes Receivable Interest Receivable inven Supplies acc Income Taxes Payable comm retained Sales Revenu Interest Revenue cost serv Income Statement For the Month Ending January 31, 2022 4 Sales Revenues Cost of Goods Sold Gross Pront Operating Expenses Service Chance Expenso $ Other Operating Experts Supplies Exponse Badebts Expense Total Operating Expenses Net Income / Loss) CULLUMBER COMPANY Retained Earnings Statement January 31, 2022 Retained Earnings, January 1 TA Add : Net Income /(Loss) Retained Earnings, January 31 $ CULLUMBER COMPANY Balance Sheet Assets Current Assets $ acc allowance $ Liabilities and Stockholders' Equity $