Victoria Companys statement of nancial position at December 31, 2015, is presented below.

Victoria Company

Statement of Financial Position

December 31, 2015

Inventory9,400

Share capitalordinary 20,000

Accounts receivable 19,780

Retained earnings12,730

Allowance for doubtful accounts (800)

Accounts payable8,750

Cash 13,100

Total Assets41,480

Total Equity and Liabilities41,480

During January 2016, the following transactions occurred.

Jan. 1Victoria accepted a 4-month, 8% note from Leon Company in payment of Leons 1,500 account.

Jan. 3Victoria wrote off as uncollectible the accounts of Barker Corporation (450) and Elmo Company (330).

Jan. 8Victoria purchased 17,200 of inventory on account.

Jan. 11 Victoria sold for 25,000 on account inventory that cost 17,500.

Jan. 15 Victoria sold inventory that cost 780 to Joe Haribo for 1,200 cash.

Jan. 17 Victoria collected 22,900 from customers on account.

Jan. 21 Victoria paid 16,300 on accounts payable.

Jan. 24 Victoria received payment in full (330) from Elmo Company on the account written off on January 3.

Jan. 27 Victoria purchased supplies for 1,400 cash.

Jan. 31 Victoria paid other operating expenses, 3,218.

Adjustment data:

1. Interest is recorded for the month on the note from January 1.

2. Bad debts are expected to be 5% of the January 31, 2016, accounts receivable.

3. A count of supplies on January 31, 2016, reveals that 470 remains unused.

INSTRUCTIONS: (You need to set up T-accounts to determine ending balances).

(a) Prepare journal entries for the transactions listed above and adjusting entries.

(b) Prepare an adjusted trial balance at January 31, 2016.

(c) Prepare an income statement and a retained earnings statement for the month ending January 31, 2016, and a classied statement of nancial position as of January 31, 2016.Victoria Companys statement of nancial position at December 31, 2015, is presented below.

Victoria Company

Statement of Financial Position

December 31, 2015

Inventory9,400

Share capitalordinary 20,000

Accounts receivable 19,780

Retained earnings12,730

Allowance for doubtful accounts (800)

Accounts payable8,750

Cash 13,100

Total Assets41,480

Total Equity and Liabilities41,480

During January 2016, the following transactions occurred.

Jan. 1Victoria accepted a 4-month, 8% note from Leon Company in payment of Leons 1,500 account.

Jan. 3Victoria wrote off as uncollectible the accounts of Barker Corporation (450) and Elmo Company (330).

Jan. 8Victoria purchased 17,200 of inventory on account.

Jan. 11 Victoria sold for 25,000 on account inventory that cost 17,500.

Jan. 15 Victoria sold inventory that cost 780 to Joe Haribo for 1,200 cash.

Jan. 17 Victoria collected 22,900 from customers on account.

Jan. 21 Victoria paid 16,300 on accounts payable.

Jan. 24 Victoria received payment in full (330) from Elmo Company on the account written off on January 3.

Jan. 27 Victoria purchased supplies for 1,400 cash.

Jan. 31 Victoria paid other operating expenses, 3,218.

Adjustment data:

1. Interest is recorded for the month on the note from January 1.

2. Bad debts are expected to be 5% of the January 31, 2016, accounts receivable.

3. A count of supplies on January 31, 2016, reveals that 470 remains unused.

INSTRUCTIONS: (You need to set up T-accounts to determine ending balances).

(a) Prepare journal entries for the transactions listed above and adjusting entries.

(b) Prepare an adjusted trial balance at January 31, 2016.

(c) Prepare an income statement and a retained earnings statement for the month ending January 31, 2016, and a classied statement of nancial position as of January 31, 2016.