Current Attempt in Progress

Sage Equipment Co. closes its books regularly on December 31, but at the end of 2020 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.

1.		January cash receipts recorded in the December cash book totaled $53,800, of which $37,800 represents cash sales, and $16,000 represents collections on account for which cash discounts of $324 were given.
2.		January cash disbursements recorded in the December check register liquidated accounts payable of $21,325 on which discounts of $232 were taken.
3.		The ledger has not been closed for 2020.
4.		The amount shown as inventory was determined by physical count on December 31, 2020.

The company uses the periodic method of inventory.Prepare any entries you consider necessary to correct Sages accounts at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
		enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
		enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
		enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
2.	Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
		enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
		enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount

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List of Accounts

To what extent was Sage Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts: (Round ratios to 2 decimal places, e.g. 4.56.)

		Dr.			Cr.
Cash		$38,740
Accounts receivable		38,650
Inventory		66,480
Accounts payable					$45,210
Other current liabilities					13,733

		Per Balance Sheet			After Adjustment
Working capital		$enter a dollar amount			$enter a dollar amount
Current ratio		enter current ratio rounded to 2 decimal places	to 1		enter current ratio rounded to 2 decimal places	to 1