Adams Co. reports the following balance sheet accounts as of December 31. Prepare a classified balance sheet.

Salaries payable                       $ 6,000
Buildings                               55,000
Prepaid rent                             7,000
Merchandise inventory                   14,000
Accounts payable                        10,000
Prepaid insurance                        3,000
Accounts receivable                      4,000
Common stock                            10,000
Retained earnings                       50,000
Notes payable {due in 9 years)          30,000
Office supplies                          2,000
Land                                    22,000
Accumulated depreciation-Building        5,000
Mortgages payable (due in 5 years)      12,000
Cash                                    16,000

At the beginning of the year, SnapIt had $10,000 of inventory. During the year, SnapIt purchased$35,000 of merchandise and sold $30,000 of merchandise. A physical count of inventory at year-end shows$14,000 of inventory exists. Prepare the entry to record inventory shrinkage.

A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $3,000 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by$3,000. Compute the amount of overstatement or understatement for each of the following amounts for this period.

c. Net income

Adams Co. reports the following balance sheet accounts as of December 31. Prepare a classified balance sheet.

The following list includes temporary accounts from the December 31 adjusted trial balance of Emiko Co. Use these normal account balances to journalize closing entries.

$$\begin{array}{lcccr} &\textbf{Debit}&\textbf{Credit}\\[5pt] \text{Dividends}&\text{\$\hspace{5pt}33,000}\\ \text{Sales}&&\text{\$\hspace{1pt}529,000}\\ \text{Sales returns and allowances}&\text{\hspace{10pt}17,500}\\ \text{Sales discounts}&\text{\hspace{15pt}5,000}\\ \text{Cost of goods sold}&\text{\hspace{5pt}213,300}\\ \text{Sales sa!aries expense}&\text{\hspace{10pt}49,700}\\ \text{Utilities expense}&\text{\hspace{10pt}15,000}\\ \text{Selling expenses}&\text{\hspace{10pt}39,000}\\ \text{Administrative expenses}&\text{\hspace{5pt}105,000}\\ \end{array}$$

Included in Adams Company’s December 31, 2012, trial balance are the following accounts: Accounts Payable $220,000; Pension Asset/Liability$375,000; Discount on Bonds Payable $29,000; Unearned Revenue$41,000; Bonds Payable $400,000; Salaries and Wages Payable$27,000; Interest Payable $12,000; Income Taxes Payable$29,000. Prepare the long-term liabilities section of the balance sheet.

Clear Water Co. reports the following balance sheet accounts as of December 31. Prepare a classified balance sheet.

A company reports net accounts receivable of $154,000 on its December 31, 2019 balance sheet. The Allowance for Bad Debts has a credit balance of$18,000. What is the balance of Accounts Receivable?

A. $154,000

B.$159,000

C. $172,000

D.$136,000

Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 3 / 10, n /60 and an invoice price of $24,000. The merchandise had cost Mesa$16,000. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period.

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method.

$$\begin{matrix} \text{July 1 } & \text{Purchased merchandise from Boden Company for \$6,000 under credit terms of 1 / 15, n / 30, FOB shipping point, invoice dated July 1.}\\ \text{2} & \text{Sold merchandise to Creek Co. for \$900 under credit terms of 2 / 10, n / 60, FOB shipping point, invoice dated July 2. The merchandise had cost \$500.}\\ \text{3} & \text{Paid \$125 cash for freight charges on the purchase of July 1.}\\ \text{8} & \text{Sold merchandise that had cost \$1,300 for \$1,700 cash.}\\ \text{9} & \text{Purchased merchandise from Leight Co. for \$2,200 under credit terms of 2 / 15, n / 60, FOB destination, invoice dated July 9.}\\ \text{11} & \text{Received a \$200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.}\\ \text{12} & \text{Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.}\\ \text{16} & \text{Paid the balance due to Boden Company within the discount period.}\\ \text{19} & \text{Sold merchandise that cost \$800 to Art Co. for \$1,200 under credit terms of 2 / 15, n / 60, FOB shipping point, invoice dated July 19.}\\ \text{21} & \text{Issued a \$100 credit memorandum to Art Co. for an allowance on goods sold on July 19.}\\ \text{24} & \text{Paid Leight Co. the balance due, net of discount.}\\ \text{30} & \text{Received the balance due from Art Co. for the invoice dated July 19, net of discount}\\ \text{31} & \text{Sold merchandise that cost \$4,800 to Creek Co. for \$7,000 under credit terms of 2 / 10, n / 60, FOB shipping point, invoice dated July 31.}\\ \end{matrix}$$

Adams Co. reports the following balance sheet accounts as of December 31.

Required: Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

A company reports the following sales-related information. Compute and prepare the net sales portion only of this company’s multiple-step income statement.

$$\begin{matrix} \text{Sales, gross} \ldots\ldots\ldots & \text{\$200,000} & \text{Sales returns and allowances} \ldots\ldots\ldots & \text{\$16,000}\\ \text{Sales discounts } \ldots\ldots\ldots & \text{4,000} & \text{Sales salaries expense} \ldots\ldots\ldots & \text{10,000}\\ \end{matrix}$$

Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parentheses.

Med Labs has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts, $0; and Accounts Receivable,$5,000. Of the $5,000 of receivables,$1,000 are within a 2% discount period, meaning that it expects buyers to take $20 in future-period discounts arising from this period’s sales.

a. Prepare the December 31 year-end adjusting journal entry for future sales discounts.