Oriole Company's balance sheet at December 31, 2021, is presented below. Oriole Company Balance Sheet December 31, 2021 Cash $13,550 Accounts payable $9,330 Accounts receivable 21,000 Common stock 18,900 Allowance for doubtful accounts (780) Retained earnings 14,960 Inventory 9,420 $43,190 $43,190 During January 2022, the following transactions occurred. Oriole uses the perpetual inventory method. Jan. 1 Oriole accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account. 3 Oriole wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Oriole purchased $17,280 of inventory on account. 11 Oriole sold for $22,700 on account inventory that cost $17,620. 15 Oriole sold inventory that cost $630 to Jack Rice for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Oriole by First Bank is 3%. 17 Oriole collected $23,700 from customers on account. 21 Oriole paid $17,670 on accounts payable. 24 Oriole received payment in full ($300) from Drake Company on the account written off on January 3. 27 Oriole purchased advertising supplies for $1,390 cash. 31 Oriole paid other operating expenses, $2,960. 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, 2022, accounts receivable. 3. A count of advertising supplies on January 31, 2022, reveals that $580 remains unused. 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.) (You may want to set up T-accounts to determine ending balances.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to 0 decimal places, e.g. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable 3600 Accounts Receivable 3600 Jan. 3 4 Jan. 3 : Allowance for Doubtful Accounts Allowance for Doubtful Accounts 800 Accounts Receivable 800 Jan. 8 4 Inventory 17280 Inventory Accounts Payable Accounts Receivable Accounts Payable 17280 Jan. 114 Jan. 113 Accounts Receivable 22700 Sales Revenue 22700 (To record sales revenues.) Jan. 114 Cost of Goods Sold 17620 Inventory 17620 (To record cost of goods sold.) Jan. 15 Cash 970 Service Charge Expense Sales Revenue 1000 (To record sales revenues and service charges.) Jan. 15 Cost of Goods Sold 630 Inventory 630 (To record cost of goods sold.) Jan. 174 Cash 23700 Accounts Receivable 23700 Jan. 21 Accounts Payable 17670 Cash 17670 Jan. 24 Accounts Receivable 300 Allow Allowance for Doubtful Accounts 300 (To reverse allowance for doubtful debts.) Jan. 24 4 Cash 300 Accounts Receivable 300 (To record cash received from Drake Company.) Jan. 27 Supplies 1390 Cash 1390 Jan. 314 Jan 31 8 Other Operating Expenses Other Operating Exper 2960 Cash [ Cash 2960 1 Jan. 31 Interest Receivable Interest Revenue Bad Debts Expense 872 872 Allowance for Doubtful Accounts 872 Supplies Expense 810 Supplies 810 Income Tax Expense 241 Income Taxes Payable 241 Prepare an income statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) ORIOLE COMPANY Income Statement For the Month Ending January 31, 2022 Sales Revenues Sales Revenues 23700 Cost of Goods Sold 18250 i Gross Profit 5450 Operating Expenses Service Charge Expense C 30 i Other Operating Expenses 2960 Supplies Expense 810 810 i i Bad Debts Expense 872 Total Operating Expenses 4672 Income From Operations 778 Other Revenues and Gains Interest Revenue 24 Income Before Income Taxes - 802 Income Tax Expense 241 Net Income /(Loss) 561 Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to O decimal places, e.g. 1,250.) ORIOLE COMPANY Retained Earnings Statement For the Month Ending January 31, 2022 Retained Earnings, January 1 14960 Add Add 4) : Net Income /(Loss) 561 Retained Earnings, January 31 15521 e Textbook and Media List of Accounts - Your answer is partially correct. Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 1,250 ORIOLE COMPANY Balance Sheet January 31, 2022 Assets Current Assets Cash 16500 Notes Receivable 3600 Accounts Receivable 15600 Less Allowance for Doubtful Accounts 1152 14448 Interest Receivable 24 Inventory 8450 Supplies Supplies 580 Total Assets Total Assets 43602 Liabilities and Stockholders' Equity Current Liabilities Current Liabilities Accounts Payable Income Taxes Payable Accounts Payable $ 8940 241 Income Taxes Payable 241 Total Liabilities $ 9181 Stockholders' Equity Stockholders' Equity Common Stock Retained Earnings Common Stock [ 18900 18900 15521 Retained Earnings 15521 Total Stockholders' Equity 34421 Total Liabilities and Stockholders' Equity 43602