Francis Equipment Co. closes its books regularly on December 31, but at the end of 2017 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 consisting of:
		Cash sales			$28,000
		Collections on account, for which $360 of cash discounts were given			17,640
					$45,640
2.	January cash disbursements recorded in the December check register liquidated accounts				$22,450
		Discounts taken			250
3.	The ledger has not been closed for 2017.
4.	The amount shown as inventory was determined by physical count on December 31, 2017.
The company uses the periodic method of inventory.
Instructions
(a)	Prepare any entries you consider necessary to correct Franciss accounts at December 31.
	Date	Accounts		Debit	Credit
	Dec. 31
	Dec. 31
(b)	To what extent was Francis 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:
				Debit	Credit
		Cash		$39,000
		Accounts receivable		42,000
		Inventory		67,000
		Accounts payable			$45,000
		Other current liabilities			14,200
				Per Balance Sheet	After Adjustment