Reference no: EM132448841
Problem - The current assets and current liabilities sections of the balance sheet of Ivanhoe Company appear as follows.
IVANHOE COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017
|
Cash
|
|
$40,100
|
Accounts payable
|
$59,850
|
Accounts receivable
|
$89,200
|
|
Notes payable
|
60,600
|
Less: Allowance for doubtful accounts
|
8,330
|
80,870
|
|
$120,450
|
Inventory
|
|
161,250
|
|
|
Prepaid expenses
|
|
9,400
|
|
|
|
|
$291,620
|
|
|
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 $41,500, on which a cash discount of 2% was taken.
2. The inventory included $31,670 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,240 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 $30,970 were entered in the sales journal as of December 31, 2017. Of these, $19,780 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 $36,598. Of this amount, $24,598 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.
Required - Calculate the following adjusted balances.
Cash
Accounts receivable
Inventory
Accounts Payable
Notes Payable.