90.2K

Verified Solution

Link Copied!

The current assets sections of Trial Balance of Brandon Company appear as follows.

$$Cash & Cash Equivalent $

$4$

$0$

$,$

$0$

$0$

$0$

$$

$$Accounts receivable

$8$

$9$

$,$

$0$

$0$

$0$

$$Allowance for doubtful accounts

$7$

$,$

$0$

$0$

$0$

$$

$$Inventory

$1$

$7$

$1$

$,$

$0$

$0$

$0$

$$

$$Prepaid expenses

$9$

$,$

$0$

$0$

$0$

$$

$$

The following errors in the corporation

$$

s accounting have been discovered:

$1$

$.$

$$January

$2$

$0$

$2$

$4$

$$cash disbursements entered as of December

$2$

$0$

$2$

$3$

$$included payments of accounts payable in the amount of $

$3$

$9$

$,$

$0$

$0$

$0$

$,$

$$on which a cash discount of

$2$

$\%$

$$was taken.

$2$

$.$

$$The inventory included $

$2$

$7$

$,$

$0$

$0$

$0$

$$of merchandise that had been received at December

$3$

$1$

$$but for which no purchase invoices had been received or entered. Of this amount, $

$1$

$2$

$,$

$0$

$0$

$0$

$$had been received on consignment; the remainder was purchased f

$.$

o

$.$

b

$.$

$$destination$,$ terms

$2$

$/$

$1$

$0$

$,$

$$n

$/$

$3$

$0$

$.$

$3$

$.$

$$Sales for the first four days in January

$2$

$0$

$2$

$4$

$$in the amount of $

$3$

$0$

$,$

$0$

$0$

$0$

$$were entered in the sales journal as of December

$3$

$1$

$,$

$2$

$0$

$2$

$3$

$.$

$$Of these, $

$2$

$1$

$,$

$5$

$0$

$0$

$$were sales on account and the remainder were cash sales.

$4$

$.$

$$Cash$,$ not including cash sales, collected in January

$2$

$0$

$2$

$4$

$$and entered as of December

$3$

$1$

$,$

$2$

$0$

$2$

$3$

$,$

$$totaled $

$3$

$5$

$,$

$3$

$2$

$4$

$.$

$$Of this amount, $

$2$

$3$

$,$

$3$

$2$

$4$

$$was received on account after cash discounts of

$2$

$\%$

$$had been deducted; the remainder represented the proceeds of a bank loan.

Instructions

$1$

$.$

$$Restate the current assets sections of the balance sheet in accordance with good accounting practice.

$($

Assume that accounts receivable is recorded gross.

$)$

$2$

$.$

$$Prepare a Balance Sheet as of December

$3$

$1$

$,$

$2$

$0$

$2$

$4$

$$with disclosure

I NEED THE EXCERCISE DONE COMPLETELY PLEASE, NOT STEPS TO DO IT

Answer & Explanation Solved by verified expert

See Answer