Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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.)image text in transcribed

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions