Pharoah Companys balance sheet at December 31, 2021, is presented below.
Pharoah Company's balance sheet at December 31, 2021, is presented below. Pharoah Company Balance Sheet December 31, 2021 Cash $13,720 20,500 (780) Accounts receivable Accounts payable Common stock Retained earnings $8,680 20,700 Allowance for doubtful accounts 13,610 Inventory 9,550 $42.990 $42.990 During January 2022, the following transactions occurred. Pharoah uses the perpetual inventory method. Jan. 1 Pharoah accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $4,800 account. 3 Pharoah wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Pharoah purchased $16,380 of inventory on account. 11 Pharoah sold for $25,800 on account inventory that cost $16,470. 15 Pharoah sold inventory that cost $670 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Pharoah by First Bank is 3%. 17 Pharoah collected $21,600 from customers on account. 21 Pharoah paid $17,600 on accounts payable. 24 Pharoah received payment in full ($300) from Drake Company on the account written off on January 3. 27 Pharoah purchased advertising supplies for $1,280 cash, 31 Pharoah paid other operating expenses, $3,260. 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 $540 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 O 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 (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.) (1) (1) Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) PHAROAH COMPANY Adjusted Trial Balance Debit Credit Totals Prepare an income statement or lite montiehung January 31, ZUZZ. Round Urswers to decide proces, eg. 1250.) PHAROAH COMPANY Income Statement eTextbook and Media List of Accounts Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1,250.) PHAROAH COMPANY Retained Earnings Statement e Textbook and Media List of Accounts PHAROAH COMPANY Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Pharoah Company's balance sheet at December 31, 2021, is presented below. Pharoah Company Balance Sheet December 31, 2021 Cash $13,720 20,500 (780) Accounts receivable Accounts payable Common stock Retained earnings $8,680 20,700 Allowance for doubtful accounts 13,610 Inventory 9,550 $42.990 $42.990 During January 2022, the following transactions occurred. Pharoah uses the perpetual inventory method. Jan. 1 Pharoah accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $4,800 account. 3 Pharoah wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Pharoah purchased $16,380 of inventory on account. 11 Pharoah sold for $25,800 on account inventory that cost $16,470. 15 Pharoah sold inventory that cost $670 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Pharoah by First Bank is 3%. 17 Pharoah collected $21,600 from customers on account. 21 Pharoah paid $17,600 on accounts payable. 24 Pharoah received payment in full ($300) from Drake Company on the account written off on January 3. 27 Pharoah purchased advertising supplies for $1,280 cash, 31 Pharoah paid other operating expenses, $3,260. 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 $540 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 O 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 (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.) (1) (1) Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) PHAROAH COMPANY Adjusted Trial Balance Debit Credit Totals Prepare an income statement or lite montiehung January 31, ZUZZ. Round Urswers to decide proces, eg. 1250.) PHAROAH COMPANY Income Statement eTextbook and Media List of Accounts Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1,250.) PHAROAH COMPANY Retained Earnings Statement e Textbook and Media List of Accounts PHAROAH COMPANY Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity
