liabilities sections of the balance sheet of Novak Company appear as follows
BALANCE SHEET (PARTIAL)
DECEMBER 31, 2017
Cash$ 40,300Accounts payable$ 61,140Accounts receivable$89,000Notes payable71,310 Less: Allowance for doubtful accounts7,20081,800$132,450Inventory181,520Prepaid expenses8,200 $311,820
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 $39,200, on which a cash discount of 2% was taken.2.The inventory included $31,410 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,270 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 $27,320 were entered in the sales journal as of December 31, 2017. Of these, $22,050 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 $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan.
(a1) Your answer is partially correct. Try again.
Calculate the following adjusted balances.
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