Question

Pina Colada Corp.’s balance sheet at December 31, 2018, is presented below.

Pina Colada Corp. Balance Sheet December 31, 2018
Cash		$14,300			Accounts payable		$8,900
Accounts receivable		20,600			Common stock		19,500
Allowance for doubtful accounts		(700	)		Retained earnings		14,900
Inventory		9,100
		$43,300					$43,300

During January 2019, the following transactions occurred. Pina Colada uses the perpetual inventory method.

Jan. 1		Pina Colada accepted a 4-month, 8% note from Merando Company in payment of Merando’s $5,100 account.
3		Pina Colada wrote off as uncollectible the accounts of Inwood Corporation ($500) and Goza Company ($100).
8		Pina Colada purchased $16,700 of inventory on account.
11		Pina Colada sold for $26,600 on account inventory that cost $17,600.
15		Pina Colada sold inventory that cost $800 to Mark Lauber for $1,100. Lauber charged this amount on his Visa First Bank card. The service fee charged Pina Colada by First Bank is 3%.
17		Pina Colada collected $20,200 from customers on account.
21		Pina Colada paid $16,400 on accounts payable.
24		Pina Colada received payment in full ($100) from Goza Company on the account written off on January 3.
27		Pina Colada purchased supplies for $1,400 cash.
31		Pina Colada paid other operating expenses, $3,500.

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, 2019, accounts receivable.
3.		A count of supplies on January 31, 2019, reveals that $500 remains unused.

Prepare an adjusted trial balance at January 31, 2019. (Round answers to 0 decimal places, e.g. 5,275.)

Pina Colada Corp. Adjusted Trial Balance For the Quarter Ended January 31, 2019January 31, 2019For the Year Ended January 31, 2019
	Debit	Credit
	$	$
Total	$	$

Answer 1

	Trial balance
Account Titles	Debit	Credit
Cash	$          13,267		=14300-1100*3%+20200-16400+100-1400-3500
Accounts Receivable	$          22,400		=20600-5100-600+1100+26600-20200+100-100
Allowance for doubtful accounts		$             1,344	=700-600+100+1144
Note Receivable	$            5,100		=5100
Interest Receivable	$                  34		=5100*8%*1/12
Inventory	$            7,400		=9100+16700-800-17600
Supplies	$                500		=1400-900
Accounts Payable		$             9,200	=8900+16700-16400
Common Stock		$           19,500	=19500
Retained Earnings		$           14,900	=14900
Sales Revenue		$           27,700	=1100+26600
Interest Revenue		$                   34	=5100*8%*1/12
Cost of Goods Sold	$          18,400		=800+17600
Service Fee	$                  33		=1100*3%
Operating Expenses	$            3,500		3500
Bad Debt expense	$            1,144		=22400*6%-200
Supplies Expense	$                900		=1400-500
Total	$          72,678	$           72,678