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 decimal places, eg. 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 (To record sales revenues.) (To record cost of goods sold.) (To record sales revenues and service charges.) (To record cost of goods sold.) (To reverse allowance for doubtful debts.) (To record cash received from Drake Company.) e Textbook and Media List of Accounts Prepare an adjusted trial balance at January 31, 2022. (Round answers to O decimal places, e.g. 1,250.) ORIOLE COMPANY Adjusted Trial Balance Debit Credit Totals e Textbook and Media List of Accounts 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 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 e Textbook and Media List of Accounts Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to O decimal places, e.g. 1,250.) ORIOLE COMPANY Balance Sheet Assets Liabilities and Stockholders' Equity
