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ACC - Allessandro Scarlatti Company

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Question;The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows.ALLESSANDRO SCARLATTI COMPANYBALANCE SHEET (PARTIAL)DECEMBER 31, 2014Cash $ 40,000 Accounts payable $ 61,000Accounts receivable $89,000 Notes payable 67,000Less: Allowance for doubtful accounts 7,000 82,000 $128,000Inventory 171,000Prepaid expenses 9,000$302,000The 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 $39,000, on which a cash discount of 2% was taken.2. The inventory included $27,000 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,000 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 $30,000 were entered in the sales journal as of December 31, 2014. Of these, $21,500 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 $35,324. Of this amount, $23,324 was received on account after cash discounts of 2% had been deducted, the remainder represented the proceeds of a bank loan.Collapse question part(a1)Calculate the following adjusted balances.CashAccounts ReceivableInventoryAccounts PayableNotes Payable

 

Paper#39566 | Written in 18-Jul-2015

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