Wildhorse Cols balance sheet at December 31, 2021, is presented below. Wildhorse Co. Balance Sheet December 31, 2021 Cash $14,290 Accounts payable Accounts receivable 20,800 Common stock Allowance for doubtful accounts (790) Retained earnings Inventory 10,280 $44,580 $8.980 19,200 16,400 $44,580 During January 2022, the following transactions occurred. Wildhorse uses the perpetual inventory method. Jan. 1 3 8 11 15 Wildhorse accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $1,200 account. Wildhorse wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($300). Wildhorse purchased $15,710 of inventory on account. Wildhorse sold for $25,100 on account inventory that cost $17,970. Wildhorse sold inventory that cost $700 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Wildhorse by First Bank is 3%. Wildhorse collected $23,300 from customers on account. Wildhorse paid $17,490 on accounts payable. Wildhorse received payment in full ($300) from Drake Company on the account written off on January 3. Wildhorse purchased advertising supplies for $1,260 cash. Wildhorse paid other operating expenses, $2,920. 17 21 24 27 31 Adjustment data: 1. 2. 3. 4. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of advertising supplies on January 31, 2022, reveals that $530 remains unused. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) (You may want to set up T-accounts to determine ending balances.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods so perpetual inventory system.) (Round answers to 0 decimal places, eg. 1,250. Credit account titles are automatically ind amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Jan. 1 Notes Receivable 1200 Accounts Receivable Jan. 3 Allowance for Doubtful Accounts 700 Accounts Receivable Jan. 8 Inventory 15710 Accounts Payable Jan. 11 Accounts Receivable 25100 Sales Revenue (To record sales revenues.) Jan. 11 Cost of Goods Sold 17970 Inventory (To record cost of goods sold.) Jan. 15 Cash 873 Service Charge Expense 27 Sales Revenue (To record sales revenues and service charges.) Cost of Goods Sold Jan. 15 700 Inventory (To record cost of goods sold.) Cash Jan. 17 23300 Accounts Receivable Jan. 21 Accounts Payable 17490 Cash Jan. 24 Accounts Receivable 300 Allowance for Doubtful Accounts (To reverse allowance for doubtful debts.) Jan. 24 Cash 300 Accounts Receivable (To record cash received from Drake Company.) Jan. 27 Supplies 1260 Cash Jan. 31 Other Operating Expenses 2920 Cash Jan. 31 (1) Interest Receivable 8 Interest Revenue (2) Bad Debts Expense 790 Allowance for Doubtful Accounts (3) Supplies Expense 730 Supplies (4) Income Tax Expense 862 Income Taxes Payable Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) (Round answers to 0 decimal places, eg. 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Notes Receivable 1200 Accounts Receivable 1200 Allowance for Doubtful Accounts 700 Accounts Receivable 700 Inventory 15710 Accounts Payable 15710 | El El El kl kl Accounts Receivable 25100 Sales Revenue 25100 (To record sales revenues.) Cost of Goods Sold 17970 17970 Inventory (To record cost of goods sold.) Cash 873 Service Charge Expense 27 900 Sales Revenue (To record sales revenues and service charges.) Cost of Goods Sold 700 700 Inventory (To record cost of goods sold.) Cash 23300 Accounts Receivable 23300 Accounts Payable 17490 Cash 17490 Accounts Receivable 300 kl kl kl kl kl kl kl kl 300 Allowance for Doubtful Accounts (To reverse allowance for doubtful debts.) Cash 300 300 Accounts Receivable (To record cash received from Drake Company.) Supplies 1260 Cash 1260 Other Operating Expenses 2920 Cash 2920 (1) Interest Receivable 8 Interest Revenue 8 (2) Bad Debts Expense 790 Allowance for Doubtful Accounts 790 (3) Supplies Expense 730 Supplies 730 (4) Income Tax Expense 862 Income Taxes Payable 862 Prepare an adjusted trial balance at January 31, 2022. (Round answers to O decimal places, e.g. 1,250.) WILDHORSE CO. Adjusted Trial Balance January 31, 2022 Debit Credit Cash $ 17093 $ Inventory 7320 Accounts Receivable 20700 Allowance for Doubtful Accounts 929 Supplies 530 Interest Receivable 8 Notes Receivable 1200 Accounts Payable 7200 Income Taxes Payable 937 Common Stock 19200 Retained Earnings 16400 Sales Revenue 26000 Interest Revenue 8 Cost of Goods Sold 18670 Service Charge Expense 27 Supplies Expense 730 Other Operating Expenses 2920 Income Tax Expense 937 Bad Debts Expense 539 Totals $ 70674 $ 70674 Prepare an income statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 1,250.) WILDHORSE CO. Income Statement For the Month Ending January 31, 2022 Sales Revenues $ 26000 Cost of Goods Sold 18670 i Gross Profit 7330 Operating Expenses Service Charge Expense 27 i Supplies Expense 730 i Other Operating Expenses 2920 i Bad Debts Expense 539 Total Operating Expenses 4216 Income From Operations 3114 Other Revenues and Gains Interest Revenue 8 Income Before Income Taxes 3122 Income Tax Expense 937 Net Income /(Loss) 2185 e Textbook and Media List of Accounts Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to O decimal places, e.g. 1,250.) WILDHORSE CO. Retained Earnings Statement For the Month Ending January 31, 2022 Retained Earnings. January 1 $ 16400 Add Net Income /(Loss) 1248 Retained Earnings. January 31 $ 18585 Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to places, e.g. 1,250.) WILDHORSE CO. Balance Sheet January 31, 2022 Assets Current Assets Cash Inventory Accounts Receivable $ 20700 Less Allowance for Doubtful Accounts 929 Interest Receivable Notes Receivable Supplies Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ 7200 Income Taxes Payable 937 Total Liabilities Stockholders' Equity Common Stock $ 19200 Retained Earnings 18585 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to O decimal places, e.g. 1,250.) WILDHORSE CO. Balance Sheet January 31, 2022 Assets $ 17093 7320 ceivable $ 20700 : Allowance for Doubtful Accounts 929 19771 ivable 530 able 8 1200 $ 45922 Liabilities and Stockholders' Equity ties able $ 7200 Payable 937 3 8137 Equity ck $ 19200 nings 18585 olders' Equity 37785 i and Stockholders' Equity $ 45922