Assets and Liabilities

The current assets and current liabilities sections of the balance sheet of Cheyenne Company appear as follows. CHEYENNE COMPANY BALANCE SHEET (PARTIAL) DECEMBER 31, 2017 Cash $ 40,300 Accounts payable $ 61,140 Accounts receivable $89,000 Notes payable 71,310 Less: Allowance for doubtful accounts 7,200 81,800 $132,450 Inventory 181,520 Prepaid expenses 8,200 $311,820 The following errors in the corporation’s accounting have been discovered: 1. January 2018 cash disbursements entered as of December 2017 included payments of accounts payable in the amount of $39,200, on which a cash discount of 2% was taken. 2. The inventory included $31,410 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, $12,270 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 3. Sales for the first four days in January 2018 in the amount of $27,320 were entered in the sales journal as of December 31, 2017. Of these, $22,050 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2018 and entered as of December 31, 2017, totaled $35,520. Of this amount, $23,520 was received on account after cash discounts of 2% had been deducted; the remainder represented the proceeds of a bank loan. (a1) Your answer is incorrect. Try again. Calculate the following adjusted balances. Cash $ Accounts Receivable $ Inventory $ Accounts Payable $ Notes Payable $

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