Question
Madson Corporations balance sheet at December 31, 2013, is presented below. MADSON CORPORATION Balance Sheet December 31, 2013 Cash $14,870 Accounts payable $8,920 Accounts receivable
Madson Corporations balance sheet at December 31, 2013, is presented below.
MADSON CORPORATION Balance Sheet December 31, 2013 | |||||||
Cash | $14,870 | Accounts payable | $8,920 | ||||
Accounts receivable | 19,600 | Common stock | 18,200 | ||||
Allowance for doubtful accounts | (710 | ) | Retained earnings | 16,130 | |||
Inventory | 9,490 | ||||||
$43,250 | $43,250 |
During January 2014, the following transactions occurred. Madson uses the perpetual inventory method.
Jan. 1 | Madson accepted a 4-month, 8% note from Matheny Company in payment of Mathenys $4,800 account. | |
3 | Madson wrote off as uncollectible the accounts of Payton Corporation ($400) and Cruz Company ($200). | |
8 | Madson purchased $18,970 of inventory on account. | |
11 | Madson sold for $27,200 on account inventory that cost $17,050. | |
15 | Madson sold inventory that cost $780 to Rich Jenson for $1,100. Jenson charged this amount on his Visa First Bank card. The service fee charged Madson by First Bank is 3%. | |
17 | Madson collected $22,800 from customers on account. | |
21 | Madson paid $16,930 on accounts payable. | |
24 | Madson received payment in full ($200) from Cruz Company on the account written off on January 3. | |
27 | Madson purchased advertising supplies for $1,490 cash. | |
31 | Madson paid other operating expenses, $3,170. |
Adjustment data:
1. | Interest is recorded for the month on the note from January 1. | |
2. | Bad debts are expected to be 6% of the January 31, 2014, accounts receivable. | |
3. | A count of advertising supplies on January 31, 2014, reveals that $510 remains unused. | |
4. | 4.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.) |
please :
1.Prepare an adjusted trial balance at January 31, 2014. (Round answers to 0 decimal places, e.g. 1,250.)
2.Prepare an income statement. (Round answers to 0 decimal places, e.g. 1,250.)
3.Prepare a retained earnings statement for the month ending January 31, 2014. (Round answers to 0 decimal places, e.g. 1,250.)
4.Prepare a classified balance sheet as of January 31, 2014. (List current assets in order of liquidity. Round answers to 0 decimal places, e.g. 1,250.)
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