Extracted text: Crane Company's balance sheet at December 31, 2021, is presented below. Crane Company Balance Sheet December 31, 2021 Cash $13,800 Accounts payable $9,260 Accounts receivable 19,200 Common stock 18,100 Allowance for doubtful accounts (810) Retained earnings 14,320 Inventory 9,490 $41,680 $41,680 During January 2022, the following transactions occurred. Crane uses the perpetual inventory method. Jan. Crane accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $3,600 account. Crane wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Crane purchased $16,130 of inventory on account. 11 Crane sold for $24,200 on account inventory that cost $18,610. Crane sold inventory that cost $670 to Jack Rice for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Crane by First Bank is 3%. 15 17 Crane collected $21,800 from customers on account. 21 Crane paid $15,740 on accounts payable. 24 Crane received payment in full ($300) from Drake Company on the account written off on January 3. 27 Crane purchased advertising supplies for $1,360 cash. 31 Crane paid other operating expenses, $3,390. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 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.) (You may want to set up T-accounts to determine ending balances.) 2.
Extracted text: Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to 0 decimal places, eg. 1,250) CRANE COMPANY Retained Earnings Statement e Textbook and Medla List of Accounts Prepare a classifisd balance shast as of January 31, 2022 (List Current Assets in order of liquidity. Round answers to O decimal places, eg 1,250.J CRANE COMPANY Balance Sheet Assets Liabilities and Stockholders' Equity