Practice Exercise 5-02 The current assets and current liabilities sec.docx

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Practice Exercise 5-02 The current assets and current liabilities sections of the balance sheet of Sheridan Co. appear as follows. Cash Accounts receivable Less: Allowance for doubtful accounts Inventory Prepaid expenses Total current assets Sheridan Co. Balance Sheet (Partial) As of December 31, 2017 $19,000 Accounts payable $39,300 Notes payable 3,200 36,100 Unearned revenue 62,100 Total current liabilities $27,900 15,100 3,800 $46,800 6,000 $123,200 The following errors in the corporation's accounting have been discovered: 1. Keane collected $4,800 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. 2. The inventory amount reported included $2,200 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $1,600 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 3. Sales for the first day in January 2018 in the amount of $10,700 were entered in the sales journal as of December 31, 2017. Of these, $5,600 were s 4. Cash, collected in December
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  • Fall '19
  • Balance Sheet, Generally Accepted Accounting Principles, cash accounts, Sheridan Co

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