Question
The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows ALLESSANDRO SCARLATTI COMPANY BALANCE SHEET (PARTIAL) DECEMBER
The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows
ALLESSANDRO SCARLATTI COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2014
Cash 43,230 Accounts payable 66,190
Accounts receivable 91,380 Notes pable 75,050
Less: Allowance for doubtful accounts 8,350 83,030 141,240
Inventory 177,540
Prepaid expenses 9,450
313,250
The following errors in the corporations accounting have been discovered:
1. | January 2015 cash disbursements entered as of December 2014 included payments of accounts payable in the amount of $41,600, on which a cash discount of 2% was taken. | |
2. | The inventory included $27,100 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,500 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 2015 in the amount of $34,390 were entered in the sales journal as of December 31, 2014. Of these, $23,730 were sales on account and the remainder were cash sales. | |
4. | Cash, not including cash sales, collected in January 2015 and entered as of December 31, 2014, totaled $35,784. Of this amount, $25,284 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan |
a1. Calculate the following adjusted balances.
cash
accounts receivable
inventory
accounts payable
notes payable
part b:
accounts receivable balance
add accounts reduced (Jan Collection)
Less Accounts Rcv In Jan
Adjusted Accouns Receivable
Part C:
Inventory
Less Inventory (consignment)
Adjusted Inventory
Part D:
Accounts Payable Balance
Add Cash Disbursements
PUrchase INvoice Omitted
Adjusted Accounts Payable
Part E:
Notes Payable Balance
Less Proceeds of Bank Loan
Adjusted Notes Payable
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