During January of 2023, Delicious Cheese Inc. entered into the following transactions:.
a) Assume that on January 1, 2023, Delicious Cheese Inc. has a balance of $200 for supplies, $2,200 in cash, 20,000 in land, Machinery 22,000, Note payables 3,200, common stock of $2,000 and retained earnings of $14,200.
b) On January 2, Tasty cheese received $12,000 from ABC Inc., as rent for use of vacant office in Tasty Cheese’s building. Rent is paid for one year in advance.
c) On January 3, it paid cash $5,400 in advance for a 6-month insurance policy.
d) On January 5, it received cash of $12,800 for cash sale from clients
e) On January 6, sales of $10,000 on account
f) On January 6, it purchased $950 in supplies for cash.
g) On January 15, it purchased office equipment cash $2,850
h) On January 20, payment cash from customers $23,500
i) On January 25, payment cash automobile expense for the month, $3,500, rent expense $2,200, wages 8,800, and miscellaneous expense, $2,500
j) On January 30, cash payment of dividend 5,200
In preparing the financial statements, adjustments for the following data were overlooked:
a1. Unbilled sales earned at January 31, $9,700
a2. Depreciation of Machinery for January, $800
a3. Accrued wages at January 31, $2,150
a4. Supplies used during January, $975

Required

1. Make the necessary adjustments for other transactions as you see fit.

2. Prepare Income Statement For the Month Ended January 31

3. Using the information from Part A and B, prepare a statement of Stockholder’s equity 

4. Using the information from Part A and B, prepare a balance sheet for January 31

 5. Using the information from Part D (Balance sheet),

a) Calculate your quick assets ( show your work)

b) Compute the quick ratio ( show your work) 

6. Using the information from Part A and B, prepare a statement of Cash Flow ended January 31

Answer rating: 100% (QA)

To answer your question lets go through each transaction and make the necessary adjustments a Starting balances Supplies 200 Cash 2200 Land 20000 Mach... View the full answer