Selected account balances for Hulse Company at January 1, 2014, are presented be

Question

Selected account balances for Hulse Company at January 1, 2014, are presented below. Accounts Payable $14,302 Accounts Receivable 22,899 Cash 16,954 Inventory 13,528 Hulse’s sales journal for January shows a total of $111,530 in the selling price column, and its one-column purchases journal for January shows a total of $77,203. The column totals in Hulse’s cash receipts journal are: Cash Dr. $61,352; Sales Discounts Dr. $1,013; Accounts Receivable Cr. $45,307; Sales Revenue Cr. $6,176; and Other Accounts Cr. $10,882. The column totals in Hulse's cash payments journal for January are: Cash Cr. $54,209; Inventory Cr. $1,937; Accounts Payable Dr. $46,823; and Other Accounts Dr. $9,323. Hulse’s total cost of goods sold for January is $62,204. Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales Revenue are not involved in the “Other Accounts” column in either the cash receipts or cash payments journal, and are not involved in any general journal entries. Compute the January 31 balance for Hulse in the following accounts. (a) Accounts Payable $ (b) Accounts Receivable $ (c) Cash $ (d) Inventory $ (e) Sales Revenue $

Explanation / Answer

Part A)

The accounts payable balance is calculated as follows:

Accounts Payable Balance = 14,302 (Opening Balance) + 77,203 (Purchases) - 46,823 (Payments) = $44,682

_______

Part B)

The accounts receivable balance is calculated as follows:

Accounts Payable Balance = 22,899 (Opening Balance) + 111,530 (Sales) - 45,307 (Collection) = $89,122

_______

Part C)

The cash balance is calculated as follows:

Cash Balance = 16,954 (Opening Balance) + 61,352 (Cash Received) - 54,209 (Cash Payments) = $24,097

_______

Part D)

The inventory balance is calculated as follows:

Inventory Balance = 13,528 (Opening Balance) + 77,203 (Purchases) - 62,204 (Cost of Goods Sold) - 1,937 (Inventory Credit) = $26,590

_______

Part E)

The sales revenue balance is calculated as follows:

Sales Revenue = 111,530 (Sales) + 6,176 (Sales Revenue) = $117,706

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