E5-9Solution - 55,000 b Total current liabilities $168,000 a Accounts payable balance $ 61,000 Add Cash disbursements $35,000 Purchase invoice

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 5-9 (30–35 minutes) (a) AGINCOURT COMPANY Balance Sheet (Partial) December 31, 2010 Current assets Cash $ 30,476* Accounts receivable $ 91,300** Less: Allowance for doubtful accounts 7,000 84,300 Inventories 161,000*** Prepaid expenses 9,000 Total current assets $284,776 *Cash balance $ 40,000 Add: Cash disbursement after discount [$35,000 X 98%)] 34,300 74,300 Less: Cash sales in January ($30,000 – $21,500) (8,500) Cash collected on account (23,324) Bank loan proceeds ($35,324 – $23,324) (12,000 ) Adjusted cash $ 30,476 **Accounts receivable balance $ 89,000 Add: Accounts reduced from January collection ($23,324 ÷ 98%) 23,800 112,800 Deduct: Accounts receivable in January (21,500 )
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Adjusted accounts receivable $ 91,300 ***Inventories $171,000 Less: Inventory received on consignment 10,000 Adjusted inventory $161,000
Background image of page 2
EXERCISE 5-9 (Continued) Current liabilities Accounts payable. .......................................... $113,000 a Notes payable.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ................................................ 55,000 b Total current liabilities. ............................ $168,000 a Accounts payable balance $ 61,000 Add: Cash disbursements $35,000 Purchase invoice omitted ($27,000 – $10,000) 17,000 52,000 Adjusted accounts payable $113,000 b Notes payable balance $ 67,000 Less: Proceeds of bank loan 12,000 Adjusted notes payable $ 55,000 (b) Adjustment to retained earnings balance: Add: January sales discounts [($23,324 ÷ 98%) X .02]. ............................ $ 476 Deduct: January sales. ..................................... $30,000 January purchase discounts ($35,000 X 2%). ................................. 700 December purchases. ......................... 17,000 Consignment inventory. ..................... 10,000 (57,700 ) Change (decrease) to retained earnings. ......... $ (57,224 )...
View Full Document

This note was uploaded on 02/14/2011 for the course ACCT 251 taught by Professor Bouker during the Spring '11 term at Bergen Community College.

Page1 / 4

E5-9Solution - 55,000 b Total current liabilities $168,000 a Accounts payable balance $ 61,000 Add Cash disbursements $35,000 Purchase invoice

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online