The current assets and current liabilities sections of the balance sheet of Sunland Company appear as follows.

SUNLAND COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020
Cash				$ 42,800		Accounts payable		$ 64,090
Accounts receivable		$98,100				Notes payable		66,410
Less: Allowance for doubtful accounts		8,530		89,570				$130,500
Inventory				157,330
Prepaid expenses				8,110
				$297,810

The following errors in the corporations accounting have been discovered:

1.

January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $43,400, on which a cash discount of 2% was taken.

2.

The inventory included $30,790 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,860 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.

3.

Sales for the first four days in January 2021 in the amount of $29,350 were entered in the sales journal as of December 31, 2020. Of these, $21,600 were sales on account and the remainder were cash sales.

4.

Cash, not including cash sales, collected in January 2021 and entered as of December 31, 2020, totaled $37,480. Of this amount, $25,480 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.

Calculate the following adjusted balances.

Cash		$
Accounts Receivable		$
Inventory		$
Accounts Payable		$
Notes Payable		$

Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.)

SUNLAND COMPANY Balance Sheet (Partial) December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Asset
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
			$
	$
AddLess:
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity			$
Liabilities and Stockholders' Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
			$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity			$

State the net effect of your adjustments on Sunland Companys retained earnings balance.

IncreaseDecrease to retained earnings

$