Porter Corporation's balance sheet at December 31, 2011, is presented below.
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PORTER CORPORATION
Balance Sheet
December 31, 2011
| Cash |
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$14,060 |
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Accounts payable |
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$8,630 |
| Accounts receivable |
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21,700 |
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Common stock |
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15,400 |
| Allowance for doubtful accounts |
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(870 |
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Retained earnings |
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20,120 |
| Inventory |
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9,260 |
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$44,150 |
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$44,150 |
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During January 2012, the following transactions occurred. Porter uses the perpetual inventory method.
| Jan. 1 |
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Porter accepted a 4-month, 8% note from Anderko Company in payment of Anderko's $3,600 account. |
| 3 |
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Porter wrote off as uncollectible the accounts of Elrich Corporation ($400) and Rios Company ($200). |
| 8 |
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Porter purchased $16470 of inventory on account. |
| 11 |
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Porter sold for $27200 on account inventory that cost $17,860. |
| 15 |
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Porter sold inventory that cost $750 to Fred Berman for $1,400. Berman charged this amount on his Visa First Bank card. The service fee charged Porter by First Bank is 3%. |
| 17 |
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Porter collected $22,200 from customers on account. |
| 21 |
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Porter paid $16,090 on accounts payable. |
| 24 |
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Porter received payment in full ($200) from Rios Company on the account written off on January 3. |
| 27 |
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Porter purchased advertising supplies for $1,440 cash. |
| 31 |
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Porter paid other operating expenses, $3,230. |
Adjustment data:
| 1. |
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Interest is recorded for the month on the note from January 1. |
| 2. |
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Bad debts are expected to be 6% of the January 31, 2012, accounts receivable. |
| 3. |
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A count of advertising supplies on January 31, 2012, reveals that $590 remains unused. |
| 4. |
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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.)
Need help with the Adjusted Trial Balance
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