Question

instruction A,B,C

for C: there are income statement, retained earning statement, and balance sheet.

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SIve Accounting ACR8 Hudson Corporation's balance sheet at December 31, 2021, is presented below. Hudson Corporation Balance Sheet December 31, 2021 Cash $13,100 19,780 Accounts payable Common stock Retained earnings $ 8,750 20,000 12,730 Accounts receivable Allowance for doubtful accounts (800) 9,400 Inventory $41,480 $41,480 During January 2022, the following transactions occurred. Hudson uses the perpetual inventory method. Hudson accepted a 4-month, 8 % note from Betheny Company in payment of Betheny's Jan. 1 $1,200 account. Hudson wrote off as uncollectible the accounts of Walter Corporation ($450) and Drake Company ($280). Hudson purchased $17,200 of inventory on account. Hudson sold for $25,000 on account inventory that cost $17,500. Hudson sold inventory that cost $700 to Jack Rice for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Hudson by First Bank is 3 % Hudson collected $22,900 from customers on account 3 11 15 17 Hudson paid $16,300 on accounts payable. Hudson received payment in full ($280) from Drake Company on the account written off on January 3. Hudson purchased advertising supplies for $1,400 cash. Hudson paid other operating expenses, $3,218. 21 24 27 31 Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. 3. A count of advertising supplies on January 31, 2022, reveals that $560 remains unused. 4. The income tax rate is 30%. (Hint : Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) Instructions (You may want to set up T-accounts to determine ending balances.) a. Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) b. Prepare an adjusted trial balance at January 31, 2022. c. Prepare an income statement and a retained earnings statement for the month ending January 31, 2022, and a classified balance sheet as of January 31, 2022

Answer 1

Answer.

Journal Entries
Date	Account Tittle	Debit	Credit
2022
1-Jan	Account Payable	1200
	Notes Payable		1200
3-Jan	Allowance for Doubtful Accounts	730
	Account Receivable- W. Corporation		450
	Account Receivable-D. Company		280
8-Jan	Inventory	17,500
	Account Payable		17,500
11-Jan	Account Receivable	25000
	Sales		25000
11-Jan	Cost of Goods Sold	17,500
	Inventory		17500
15-Jan	Cash	970
	Credit Card Expense	30
	Sales		1000
15-Jan	Cost of Goods Sold	700
	Inventory		700
17-Jan	Cash	22900
	Account Receivable		22900
21-Jan	Account Payable	16300
	Cash		16,300
24-Jan	Account Receivable-D. Company	280
	Allowance for Doubtful Accounts		280
24-Jan	Cash	280
	Account Receivable-D. Company		280
27-Jan	Supplies	1400
	Cash		1400
31-Jan	Operating Expense	3218
	Cash		3218
Adjusting Journal Entries
31-Jan	Supplies Expense	840
	Supplies		840
31-Jan	Interest Expense	8
	Interest Payable		8
	200 x 8% x 1/12= Rs. 8
31-Jan	Bad Debt Expense	1269
	Allowance for doubtful accounts		1269
	21,150 x 6% = 1269
31-Jan	Income Tax Expense	731
	Income Tax Payable		731
	30% of P.B.T- 2435 = 731

Account Tittle	Trial Balance		Adjustment		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	13100		24150	20918	16332
Account Receivable	19780		25280	23910	21150
Supplies			1400	840	560
Allowance for doubtful accounts		800	450	1269		1619
Inventory	9400		17500	18200	8700
Accounts Payable		8750	17500	17500		8750
Interest Payable				8		8
Notes Payable				1200		1200
Income Tax Payable				731		731
Common Stock		20000		20000		20000
Retained Earnings		12730		12730		12730
Sales				26000		26000
Cost of Goods Sold			18200		18200
Operating Expense			3218		3218
Credit Card Expense			30		30
Supplies Expense			840		840
Interest Expense			8		8
Bad debt expense			1269		1269
Income Tax Expense			731		731
	42280	42280	110576	143306	71038	71038