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Comprehensive Problem 8 (Part Level Submission) Pina Colada Corp.'s balance sheet at December 31, 2018, is presented below. Pina Colada Corp. Balance Sheet December 31, 2018 $8,900 19,500 Accounts payable Cash Accounts receivable $14.300 20,600 Common stock 14.900 (700) Retained eamings Allowance for doubtful accounts 9,100 Inventory $43.300 $43,300 During January 2019, the following transactions occurred. Pina Colada uses the perpetual inventery method. Pina Colada accepted a 4-month, 8% note from Merando Company in payment of Herando's $5,100 account Jan. 1 Pina Colada wrote off as uncollectible the accounts of Inwood Corporation ($500) and Gora Company ($100) 3 Pina Colada purchased $16,700 of inventory on account Pina Colada sold for $26,600 on account inventory that cost $17,600. 11 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 15 Pina Colada collected $20,200 from customers on account 17 Pina Colada paid $16,400 on accounts payable. 21 Pina Colada recelved payment in full ($100) from Goza Company on the account written off on January 3 Pina Colada purchased supplies for $1,400 cash. 24 27 Pina Colada paid other operating expenses, $3,500 31 Adjustment data: Interest is recorded for the month on the note from January 1 1. Bad debts are expected to be 6% of the January 31, 2019, accounts receivable. 2. A count of supplies on January 31, 2019, reveals that $500 remains unused. 3. Prepare journal entries for the transactions listed above and adjusting entries. (Indude entries for cost of goods sold using the perpetual system) (Credit account titles are automatically indented when amount entered. Do not indent manually. Round answers to 0 decimal places, eg. 5,275) w A Nem Accont Ttles and Explanation Date Debit Creda Jan. 1 Notes Receivable 5100 Study Accounts Receivable 510 lan. 3 Allowance for Doubthul Accounts 600 Accounts Recelvable 600 tventory Jan 8 16700 Accounts Payable 16700 Jan 11 Accounts Recelvable 26600l Sales Reverue 26000 (To record sales revenues) Cost of Goods Seld an 11 17600 17600 Inventery (Te record cost of goods sold.) Jan 13 Cash 130 seReve 1100 Cost of Geods Sold (To recard sales revenues and service charges) (To record sales revenues and service charges.) (To record cost of goods sold.) (To reinstate the account previously written-off.). (To record the payment received.) (To record other operating expense.) X (To record other operating expense.) v (1) (To record interest revenue.) (2) (To record bad debt expense.) (3) (To record supplies expense.) EX X 121

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