Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)
Prepare an income statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)
Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.)
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.)
Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,340 Accounts payable Accounts receivable 19,700 Common stock Allowance for doubtful accounts (860) Retained earnings Inventory 9,980 $43,160 $9,230 21,700 12,230 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method. Jan. 1 3 8 11 15 Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's 3,600 account. Carla Vista wrote off as uncollectible the accounts of Walter Corporation (5400) and Drake Company ($300). Carla Vista purchased $18,210 of inventory on account Carla Vista sold for $27,000 on account inventory that cost $16,920. Carla Vista Sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Carla Vista by First Bank is 3%. Carla Vista collected $23,600 from customers on account Carla Vista paid $17.630 on accounts payable Carla Vista received payment in full (5300) from Drake Company on the account written off on January 3. Carla Vista purchased advertising supplies for $1.440 cash. Carla Vista paid other operating expenses. $3.330. 17 21 24 27 31 Adjustment data: Interest is recorded for the month on the note from January 1 Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of advertising supplies on January 31, 2022, reveals that $590 remains unused. 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.) 1 . 3. 4. (You may want to set up T-accounts to determine ending balances.) Carla Vista Co. Balance Sheet December 31, 2021 Cash $14,340 Accounts payable Accounts receivable 19,700 Common stock Allowance for doubtful accounts (860) Retained earnings Inventory 9,980 $43,160 $9,230 21,700 12,230 $43,160 During January 2022, the following transactions occurred. Carla Vista uses the perpetual inventory method. Jan. 1 3 8 11 15 Carla Vista accepted a 4-month, 8% note from Betheny Company in payment of Betheny's 3,600 account. Carla Vista wrote off as uncollectible the accounts of Walter Corporation (5400) and Drake Company ($300). Carla Vista purchased $18,210 of inventory on account Carla Vista sold for $27,000 on account inventory that cost $16,920. Carla Vista Sold inventory that cost $680 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Carla Vista by First Bank is 3%. Carla Vista collected $23,600 from customers on account Carla Vista paid $17.630 on accounts payable Carla Vista received payment in full (5300) from Drake Company on the account written off on January 3. Carla Vista purchased advertising supplies for $1.440 cash. Carla Vista paid other operating expenses. $3.330. 17 21 24 27 31 Adjustment data: Interest is recorded for the month on the note from January 1 Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of advertising supplies on January 31, 2022, reveals that $590 remains unused. 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.) 1 . 3. 4. (You may want to set up T-accounts to determine ending balances.)
