Exercise 5-9 (Part Level Submission) The current assets and current liabilities
ID: 2523723 • Letter: E
Question
Exercise 5-9 (Part Level Submission)
The current assets and current liabilities sections of the balance sheet of Bridgeport Company appear as follows.
BRIDGEPORT COMPANY
BALANCE SHEET (PARTIAL)
DECEMBER 31, 2017
Cash
$ 47,100
Accounts payable
$ 65,500
Accounts receivable
$91,200
Notes payable
66,460
Less: Allowance for doubtful accounts
8,900
82,300
$131,960
Inventory
166,240
Prepaid expenses
9,620
$305,260
The following errors in the corporation’s accounting have been discovered:
1.
January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $44,100, on which a cash discount of 2% was taken.
2.
The inventory included $28,320 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,950 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 2018 in the amount of $28,070 were entered in the sales journal as of December 31, 2017. Of these, $23,480 were sales on account and the remainder were cash sales.
4.
Cash, not including cash sales, collected in January 2018 and entered as of December 31, 2017, totaled $34,540. Of this amount, $22,540 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.
Calculate the following adjusted balances.
Cash
Accounts Receivable
Inventory
Accounts Payable
Notes Payable
Exercise 5-9 (Part Level Submission)
The current assets and current liabilities sections of the balance sheet of Bridgeport Company appear as follows.
BRIDGEPORT COMPANY
BALANCE SHEET (PARTIAL)
DECEMBER 31, 2017
Cash
$ 47,100
Accounts payable
$ 65,500
Accounts receivable
$91,200
Notes payable
66,460
Less: Allowance for doubtful accounts
8,900
82,300
Total$131,960
Inventory
166,240
Prepaid expenses
9,620
Total$305,260
The following errors in the corporation’s accounting have been discovered:
1.
January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $44,100, on which a cash discount of 2% was taken.
2.
The inventory included $28,320 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,950 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 2018 in the amount of $28,070 were entered in the sales journal as of December 31, 2017. Of these, $23,480 were sales on account and the remainder were cash sales.
4.
Cash, not including cash sales, collected in January 2018 and entered as of December 31, 2017, totaled $34,540. Of this amount, $22,540 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.
Your answer is partially correct. Try again.Calculate the following adjusted balances.
Cash
$Accounts Receivable
$Inventory
$Accounts Payable
$Notes Payable
$Explanation / Answer
1. Cash $ 47,100 Add: Cash Disbursement after discount (44100*98%) $ 43,218 Less: Cash sales of january (28070 - 23480) $ (4,590) Less; cash Collected on account $ (22,540) Less: Bank Loan Proceeds (34540 - 22540) $ (12,000) Adjusted Cash Balance $ 51,188 2.Account Receivable $ 91,200 Add: Amount reduced from January Collection (22540*.98) $ 22,089 Less: Account Receivables of januray $ (23,840) Adjusted Account receivable Balance $ 89,449 3.Inventory $ 166,240 Less: Inventory received on consignment $ (10,950) Adjusted Inventory Balance $ 155,290 4.Accounts Payable $ 65,500 Add: cash Disbursements $ 44,100 Add: Omitted Purchase Invoice (28320 - 10950) $ 17,370 Adjusted Account Payable Balance $ 126,970 5.Notes Payable $ 66,460 Less: Proceeds of Bank Loan (34540 - 22540) $ (12,000) Adjusted Notes Payable Balance $ 54,460