Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The current assets and current liabilities sections of the balance sheet of Larkspur Company appear as follows. LARKSPUR COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020

image text in transcribed

The current assets and current liabilities sections of the balance sheet of Larkspur Company appear as follows. LARKSPUR COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 40,300 $ 61,140 Accounts payable Notes payable $ 89,000 71,310 7,200 $132.450 Accounts receivable Less: Allowance for doubtful accounts Inventory Prepaid expenses 81.800 181,520 8,200 $ 311,820 2 The following errors in the corporation's accounting have been discovered: 1 January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $ 39.200. on which a cash discount of 2% was taken. The inventory included $ 31,410 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $ 12,270 had been received on consignment, the remainder was purchased fo.b.destination terms 2/10,n/30. Sales for the first four days in January 2021 in the amount of $ 27.320 were entered in the sales journal as of December 31, 2020. Of these. $ 22,050 were sales on account and the remainder were cash sales. Cash, not including cash sales.collected in January 2021 and entered as of December 31, 2020, totaled $ 35.520. Of this amount. $ 23,520 was received on account after cash discounts of 2% had been deducted the remainder represented the proceeds of a bank loan 3. 4. (21) Calculate the following adjusted balances. Cash $ Accounts Receivable $ Inventory $ Accounts Payable $ Notes Payable $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Brazilian Economy Confronting Structural Challenges

Authors: Edmund Amann

1st Edition

0367245272, 9780367245276

More Books

Students also viewed these Accounting questions