The current assets and current liabilities sections of the balance sheet of Pharoah Co. appear as follows. Cash Accounts receivable Less: Allowance for doubtful accounts Inventory Prepaid expenses Total current assets Pharoah Co. Balance Sheet (Partial) As of December 31, 2017 $18,900 Accounts payable $39,600 Notes payable 2,900 36,700 Unearned revenue 62,100 Total current liabilities $29,200 15,000 2,100 $46,300 7,200 $ 124,900 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. 5. 6. Keane collected $4,500 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. The inventory amount reported included $3,600 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,200 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first day in January 2018 in the amount of $10,700 were entered in the sales journal as of December 31, 2017. Of these, $6,600 were sales on account and the remainder were cash sales. Cash, collected in December 2017, but entered as received in January 2018 totaled $3,000. Of this amount, $2,254 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. Cash of $3,600 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $6,200, on which a cash discount of 1% was taken. (al) Calculate the following adjusted balances. Cash Accounts Receivablet Inventory Accounts Payable Notes Payable + Unearned Revenue t The current assets and current liabilities sections of the balance sheet of Pharoah Co. appear as follows. Cash Accounts receivable Less: Allowance for doubtful accounts Inventory Prepaid expenses Total current assets Pharoah Co. Balance Sheet (Partial) As of December 31, 2017 $18,900 Accounts payable $39,600 Notes payable 2,900 36,700 Unearned revenue 62,100 Total current liabilities $29,200 15,000 2,100 $46,300 7,200 $ 124,900 The following errors in the corporation's accounting have been discovered: 1. 2. 3. 4. 5. 6. Keane collected $4,500 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. The inventory amount reported included $3,600 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,200 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first day in January 2018 in the amount of $10,700 were entered in the sales journal as of December 31, 2017. Of these, $6,600 were sales on account and the remainder were cash sales. Cash, collected in December 2017, but entered as received in January 2018 totaled $3,000. Of this amount, $2,254 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. Cash of $3,600 received in January 2018 was entered as received in December 2017. This cash represented the proceeds of a bank loan that matures in July 2018. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $6,200, on which a cash discount of 1% was taken. (al) Calculate the following adjusted balances. Cash Accounts Receivablet Inventory Accounts Payable Notes Payable + Unearned Revenue t
