*Problem 7-1 Blue Equipment Co. closes its books book regularly on December 31, but at the end of 2017 it held its cash open so that a more favorable balance sheet and disbursements for the first 10 days of January were recorded as December transactions. The information is given below. could be prepared for credit purposes. Cash receipts January cash receipts recorded in the December cash book totaled $53,400, of represents cash sales, and $17,700 represents collections on account for $332 were given. January cash disbursements recorded in the December check register liquidated 1. which cash discounts of 2. of 21,497, on which discounts of $250 were taken. ledger has not been closed for 2017 amount shown as inventory was determined by physical count on December 31, 2017 3. The company uses the periodic method of inventory Prepare any entries you consider necessary to correct Blue's accounts at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 2. Dec. 31 To what extent was Blue Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts: (Round ratios to decimal place, e.g. 4.56.) Dr. Cr. $40,840 Cash Accounts receivable Inventory Accounts payable Other current liabilities 38,090 60,450 $41,220 14,157