Question

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

MARIN COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017
Cash				$ 46,100		Accounts payable		$  56,560
Accounts receivable		$95,900				Notes payable		67,760
Less: Allowance for doubtful accounts		8,850		87,050				$124,320
Inventory				163,710
Prepaid expenses				9,840
				$306,700

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 $39,900, on which a cash discount of 2% was taken.
2.		The inventory included $31,250 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,200 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 $28,630 were entered in the sales journal as of December 31, 2017. Of these, $23,360 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 $35,030. Of this amount, $23,030 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. Your answer is incorrect. Try again. Calculate the following adjusted balances. Cash $ Accounts Receivable $ Inventory $ Accounts Payable $ Notes Payable $

Answer 1