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The current assets and current liabilities sections of the balance sheet of Sheridan Co.appear as follows. Sheridan Co. Balance Sheet (Partial) As of December 31,
The current assets and current liabilities sections of the balance sheet of Sheridan Co.appear as follows. Sheridan Co. Balance Sheet (Partial) As of December 31, 2017 Cash $19,000 Accounts payable $27,900 Accounts receivable $39,300 Notes payable 15,100 Less: Allowance for doubtful accounts 3,200 36,100 Unearned revenue 3,800 Inventory 62,100 Total current liabilities $46,800 Prepaid expenses 6,000 Total current assets $123,200 The following errors in the corporation's accounting have been discovered: 1. Keane collected $4,800 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. 2. The inventory amount reported included $2,200 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,600 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10,n/30. 3. 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. $5.600 were sales on account and the remainder were cash sales. 4. Cash, collected in December 2017, but entered as received in January 2018 totaled $3,900. Of this amount, $2.842 was received on account after cash discounts of 2% had been deducted; the remainder was collected for cash sales. 5. Cash of $5,000 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. 6. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $6,600, on which a cash discount of 1% was taken. Your answer is partially correct. Calculate the following adjusted balances. Cash $ 19334 Accounts Receivable $ 28400 Inventory 60500 Accounts Payable Notes Payable 10100 Unearned Revenue 8600
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