Need Accounting help with assets and liabilities

Nov 22nd, 2015
Business Finance
Price: $5 USD

Question description

The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows.

DECEMBER 31, 2014

Cash $ 44,980Accounts payable$ 62,970
Accounts receivable$93,380             Notes payable71,970
 Less: Allowance for doubtful accounts7,61085,770 $134,940
Inventory 179,050  
Prepaid expenses 9,600  


The following errors in the corporation’s accounting have been discovered:

1.January 2015 cash disbursements entered as of December 2014 included payments of accounts payable in the amount of $41,500, on which a cash discount of 2% was taken.
2.The inventory included $31,500 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $11,400 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 2015 in the amount of $32,250 were entered in the sales journal as of December 31, 2014. Of these, $22,810 were sales on account and the remainder were cash sales.
4.Cash, not including cash sales, collected in January 2015 and entered as of December 31, 2014, totaled $37,212. Of this amount, $25,872 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.



Accounts Receivable




Accounts Payable


Notes Payable




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(Top Tutor) Kelvin B
School: Cornell University

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