Sunland Company's balance sheet at December 31, 2021, is presented below. Sunland Company Balance Sheet December 31, 2021 Cash $8,310 $13,010 20,600 Accounts payable Common stock Accounts receivable 18,500 Allowance for doubtful accounts (850) Retained earnings 15,710 Inventory 9,760 $42,520 $42,520 During January 2022, the following transactions occurred. Sunland uses the perpetual inventory method. Jan. 1 Sunland accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $1,200 account. 3 Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Sunland purchased $15,700 of inventory on account. 11 Sunland sold for $23,400 on account inventory that cost $16.110. 15 Sunland sold inventory that cost $750 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bank is 3%. 17 Sunland collected $24,700 from customers on account. 21 Sunland paid $15,620 on accounts payable. 24 Sunland received payment in full ($300) from Drake Company on the account written off on January 3. 27 Sunland purchased advertising supplies for $1,420 cash. 31 Sunland paid other operating expenses, $3,390. 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 $530 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.) - Your answer is partially correct. 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, 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 1 Notes Receivable 1200 Accounts Receivable 1200 Jan. 3 Allowance for Doubtful Accounts 800 Accounts Receivable 800 Jan. 8 Inventory 15700 Accounts Payable 15700 Jan 11 Accounts Receivable 23400 Sales Revenue 23400 (To record sales revenues.) Jan 11 Cost of Goods Sold 16110 Inventory 16110 (To record cost of goods sold.) | cash Jan 15 Service Charge Expense Sales Revenue Jan 15 750 (To record sales revenues and service charges.) Cost of Goods Sold Inventory (To record cost of goods sold.) Jan. 17 24700 Accounts Receivable 24700 Jan. 21 Accounts Payable 15620 Cash 15620 JUICCOL COULUI SUUUJ JUICI.) Jan. 17 Cash 24700 Accounts Receivable ceivable 24700 Jan.21 Accounts Payable 15620 Cash 15620 Jan. 24 ) Accounts Receivable 300 | Allowance for Doubtful Accounts 300 (To reverse allowance for doubtful debts.) Jan 24 | Cash Accounts Receivable (To record cash received from Drake Company.) Jan. 27 Supplies 1420 Cash 1420 Jan. 31 1 Other Operating Expenses 3390 3390 Jan. 31 (1) Interest Receivable Interest Revenue (2) 832 Bad Debts Expense Allowance for Doubtful Accounts 832 Supplies Expense 890 Supplies 890 Income Tax Expense 693 Income Taxes Payable Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) SUNLAND COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit Cash 18453 Notes Receivable 1200 Interest Receivable Accounts Receivable 17300 Allowance for Doubtful Accounts 1182 Inventory 8600 Supplies 530 Accounts Payable 8390 Income Taxes Payable 693 Common Stock 18500 Retained Earnings 15710 Interest Revenue Sales Revenue 24300 Cost of Goods Sold 16860 Service Charge Expense 27 Other Operating Expenses 3390 Bad Debts Expense 832 Supplies Expense 890 Income Tax Expense 693 Totals 68783 $ 68783 Prepare an income statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1,250.) SUNLAND COMPANY Income Statement For the Month Ending January 31, 2022 Sales Revenues 24300 Cost of Goods Sold 16860 i Gross Profit 7440 Operating Expenses Service Charge Expense 27 i Other Operating Expenses 3390 i Bad Debts Expense 832 Supplies Expense 390 Other Revenues and Gains 5139 Income From Operations 2301 Other Expenses and Losses Interest Revenue Retained Earnings, January 31 2309 Income Tax Expense Net Income /(Loss) 1616 - Your answer is partially correct. Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, eg. 1,250.) SUNLAND COMPANY Retained Earnings Statement For the Month Ending January 31, 2022 Retained Earnings January 1 15710 Add : Net Income /(Loss) 1616 Retained Earnings. January 31 17326 eTextbook 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 decimal places, eg. 1,250.) SUNLAND COMPANY Balance Sheet January 31, 2022 Assets Current Assets Cash 18453 Notes Receivable 1200 Interest Receivable 8390 Less : Accounts Receivable 693 9083 Allowance for Doubtful Accounts 8600 Inventory 530 Supplies Total Assets 44909 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 8390 Income Taxes Payable 693 Total Liabilities 9083 Stockholders' Equity Common Stock 18500 Retained Earnings 17326 Current Liabilities 35826 Total Liabilities and Stockholders' Equity 44909 Sunland Company's balance sheet at December 31, 2021, is presented below. Sunland Company Balance Sheet December 31, 2021 Cash $8,310 $13,010 20,600 Accounts payable Common stock Accounts receivable 18,500 Allowance for doubtful accounts (850) Retained earnings 15,710 Inventory 9,760 $42,520 $42,520 During January 2022, the following transactions occurred. Sunland uses the perpetual inventory method. Jan. 1 Sunland accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $1,200 account. 3 Sunland wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Sunland purchased $15,700 of inventory on account. 11 Sunland sold for $23,400 on account inventory that cost $16.110. 15 Sunland sold inventory that cost $750 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Sunland by First Bank is 3%. 17 Sunland collected $24,700 from customers on account. 21 Sunland paid $15,620 on accounts payable. 24 Sunland received payment in full ($300) from Drake Company on the account written off on January 3. 27 Sunland purchased advertising supplies for $1,420 cash. 31 Sunland paid other operating expenses, $3,390. 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 $530 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.) - Your answer is partially correct. 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, 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 1 Notes Receivable 1200 Accounts Receivable 1200 Jan. 3 Allowance for Doubtful Accounts 800 Accounts Receivable 800 Jan. 8 Inventory 15700 Accounts Payable 15700 Jan 11 Accounts Receivable 23400 Sales Revenue 23400 (To record sales revenues.) Jan 11 Cost of Goods Sold 16110 Inventory 16110 (To record cost of goods sold.) | cash Jan 15 Service Charge Expense Sales Revenue Jan 15 750 (To record sales revenues and service charges.) Cost of Goods Sold Inventory (To record cost of goods sold.) Jan. 17 24700 Accounts Receivable 24700 Jan. 21 Accounts Payable 15620 Cash 15620 JUICCOL COULUI SUUUJ JUICI.) Jan. 17 Cash 24700 Accounts Receivable ceivable 24700 Jan.21 Accounts Payable 15620 Cash 15620 Jan. 24 ) Accounts Receivable 300 | Allowance for Doubtful Accounts 300 (To reverse allowance for doubtful debts.) Jan 24 | Cash Accounts Receivable (To record cash received from Drake Company.) Jan. 27 Supplies 1420 Cash 1420 Jan. 31 1 Other Operating Expenses 3390 3390 Jan. 31 (1) Interest Receivable Interest Revenue (2) 832 Bad Debts Expense Allowance for Doubtful Accounts 832 Supplies Expense 890 Supplies 890 Income Tax Expense 693 Income Taxes Payable Prepare an adjusted trial balance at January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) SUNLAND COMPANY Adjusted Trial Balance January 31, 2022 Debit Credit Cash 18453 Notes Receivable 1200 Interest Receivable Accounts Receivable 17300 Allowance for Doubtful Accounts 1182 Inventory 8600 Supplies 530 Accounts Payable 8390 Income Taxes Payable 693 Common Stock 18500 Retained Earnings 15710 Interest Revenue Sales Revenue 24300 Cost of Goods Sold 16860 Service Charge Expense 27 Other Operating Expenses 3390 Bad Debts Expense 832 Supplies Expense 890 Income Tax Expense 693 Totals 68783 $ 68783 Prepare an income statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1,250.) SUNLAND COMPANY Income Statement For the Month Ending January 31, 2022 Sales Revenues 24300 Cost of Goods Sold 16860 i Gross Profit 7440 Operating Expenses Service Charge Expense 27 i Other Operating Expenses 3390 i Bad Debts Expense 832 Supplies Expense 390 Other Revenues and Gains 5139 Income From Operations 2301 Other Expenses and Losses Interest Revenue Retained Earnings, January 31 2309 Income Tax Expense Net Income /(Loss) 1616 - Your answer is partially correct. Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, eg. 1,250.) SUNLAND COMPANY Retained Earnings Statement For the Month Ending January 31, 2022 Retained Earnings January 1 15710 Add : Net Income /(Loss) 1616 Retained Earnings. January 31 17326 eTextbook 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 decimal places, eg. 1,250.) SUNLAND COMPANY Balance Sheet January 31, 2022 Assets Current Assets Cash 18453 Notes Receivable 1200 Interest Receivable 8390 Less : Accounts Receivable 693 9083 Allowance for Doubtful Accounts 8600 Inventory 530 Supplies Total Assets 44909 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 8390 Income Taxes Payable 693 Total Liabilities 9083 Stockholders' Equity Common Stock 18500 Retained Earnings 17326 Current Liabilities 35826 Total Liabilities and Stockholders' Equity 44909