Account List

Exercise 5-9 The current assets and current liabilities sections of the balance sheet of Cullumber Company appear as follows. CULLUMBER COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2020 Cash $ 46,800 Accounts payable Accounts receivable $94,800 Notes payable Less: Allowance for doubtful accounts 7,660 87,140 Inventory 166,770 Prepaid expenses 9,030 $309,740 $ 55,740 68,130 $123,870 The following errors in the corporation's accounting have been discovered: 1. 2. January 2021 cash disbursements entered as of December 2020 included payments of accounts payable in the amount of $39,300, on which a cash discount of 2% was taken. The inventory included $29,980 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $10,920 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. Sales for the first four days in January 2021 in the amount of $28,340 were entered in the sales journal as of December 31, 2020. Of these, $20,610 were sales on account and the remainder were cash sales. Cash, not including cash sales, collected in January 2021 and entered as of December 31, 2020, totaled $36,304. Of this amount, $24,304 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. 3. 4. Calculate the following adjusted balances. Cash Accounts Receivable $ Inventory $ $ Accounts Payable Notes Payable $ Restate the current assets and current liabilities sections of the balance sheet in accordance with good accounting practice. Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity.) CULLUMBER COMPANY Balance Sheet (Partial) Asset Liabilities and Stockholders' Equity State the net effect of your adjustments on Cullumber Company's retained earnings balance. to retained earnings $ Accounts Payable Accounts Receivable Accrued Liabilities Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Advances to Employees Allowance for Doubtful Accounts Bonds Payable Bond Sinking Fund Buildings Cash Cash Surrender Value of Life Insurance Common Stock Construction in Process Copyrights Debt Investments Dividends Payable Discount on Bonds Payable Equipment Equity Investments Finished Goods Inventory Franchises Goodwill Income Tax Payable Income Tax Receivable Interest Payable Interest Receivable Inventory Investments in Common Stock Investments in Stocks and Bonds Land Land Held for Future Use Notes Payable Notes Receivable Noncontrolling Interest Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Patents Payroll Tax Expense Payroll Taxes Payable Pension Liability Pension Obligation Plant Assets Premium on Bonds Payable Preferred Stock Preferred Stock Investments Prepaid Advertising Prepaid Insurance Prepaid Expenses Prepaid Rent Raw Materials Receivables-Officers Rent Payable Restricted Cash Retained Earnings Salaries and Wages Payable Supplies Timberland Treasury Stock Trademarks Trading Securities Unearned Service Revenue Unearned Rent Revenue Unearned Subscriptions Revenue Withholding Taxes Payable Work-in-Process