Question

This company uses the perpetual system of inventory. Check for these figures. Cash Receipts Journal, total...

This company uses the perpetual system of inventory.

Check for these figures.

Cash Receipts Journal, total Cash DR: $68,094

Cash Payments Journal, total Cash CR: $62,185

Net Income: $19,351

Total Assets: $143,246

Total Post Closing Trial Balance: $144,871

Colorado Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidary ledger. Balances related to both the general ledger and the subsidary ledger for Colorado Co. are indicated in the working paper. Below are a series of transactions for the company for the month of January. Credit sales terms are 2/10, n/30. The cost of the merchandise sold was 62% of the sales price.

(Jan. 3) Sell merchandise on account to B. Richey $2,900, invoice no. 510, and to J. Forbes $1,800, invoice no. 511

(Jan. 5) Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30

(Jan. 7) Receive checks from S. Ladew $4000 and B. Garcia $2,000 after discount perios has lapsed.

(Jan. 8) Pay freight on merchandise purchased $235

(Jan. 9) Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.

(Jan. 9) Issue credit of $300 to J. Forbes for merchandise returned

(Jan. 10) Summary daily cash sales total $15,500

(Jan. 11) Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. Ladew $900, invoice no. 513

(Jan. 12) Pay rent of $1000 for January.

(Jan. 13) Receive payment in full from B. Richey and J.Forbes less cash discounts.

(Jan. 15) Withdrawal of $800 cash by J. Colorado for her personal use.

(Jan. 15) Post all entries to the subsidary ledgers.

(Jan 16.) Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30

(Jan. 17) Pay $600 cash for office supplies.

(Jan. 18) Return $200 of merchandise to S. Hoyt and receive credit.

(Jan. 20) Summary daily cash sales total $20,100.

(Jan. 21) Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.

(Jan. 21) Receive payment in full from S. LaDew less cash discount

(Jan. 22) Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $2,800, invoice no. 517.

(Jan. 22) Post all entries to the subsidary ledgers.

(Jan. 23) Send checks to D. Omara and S. Hoyt in full payment less cash discount.

(Jan. 25) Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.

(Jan. 27) Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30

(Jan. 27) Post all entries to the subsidary ledgers

(Jan. 28) Pay $200 cash for office supplies

(Jan. 31) Summary daily cash sales total $21,300.

(Jan. 31) Pay total salaries of $8,100.

Instructions

(a) Record the January transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two- column General Journal.

(b) Post the journals to the General Ledger

(c) Prepare a Trial Balance at January 31, 2018, in the Trial Balance columns of the worksheet. Complete the worksheet using the following additional information.

1. Office supplies at January 31 total $750

2. Insurance coverage expires on October 31, 2018

3. Annual depreciation on equipment is $1,500.

4. Interest of $50 has accrued on the note payable.

(d) Prepare a multiple-step Income Statement an on Owner's Equity Statement for January and a Classified Balance Sheet at the end of January.

(e) Prepare and post adjusting and closing entries.

(f) Prepare a Post-Closing Trial Balance, and determine whether the subsidary ledgers agree with the control accounts in the General Ledger.

Homework Answers

Answer #1

SALES JOURNAL JAN

DATE

DETAILS

INV NO.

JAN 3

B RICHLEY

510

2900

J FORBES

511

1800

JAN 11

R DVORAK

512

1600

S LADEW

513

900

JAN 22

RICHLEY

514

2700

DVORAK

515

2800

JA31N

GARCIA

516

3500

FORBES

517

6100

22300

PURCHASE JOURNAL

DATE

DETAILS

JAN 5

S VOGEL

5000

D LYNCH

2200

JAN 16

D OMARA

18000

S HOYT

14200

VOGEL

1500

JAN 27

OMARA

14500

D LYNCH

1200

S VOGEL

5400

62000

CASH RECEIPTS JOURNAL

DATE

DETAILS

JAN 7

S LADEW

4000

B GARCIA

2000

JAN 10

CASH SALES

15500

JAN 12

RENT JAN

1000

JAN 13

B RICHLEY

58

2842

JAN 13

J FORBES

32

1568

JAN 22

LADEW

18

882

JAN 31

SALES

21300

108

49092

CASH PAYMENTS JOURNAL

DATE

DETAILS

JAN 8

FREIGHT

235

JAN 9

S HOYT

180

8820

D OMARA

110

10890

JAN 15

DRAWINGS

800

JAN 16

OFFICE SUPPLIES

600

JAN 23

OMARA

1800

16200

JAN 23

HOYT

284

13916

JAN 28

OFFICE SUPPLIES

200

JAN 31

SALARIES

8100

2084

59761

GENERAL JOURNAL

DATE

DETAILS

DEBIT $

CREDIT $

JAN 9

SALES RETURNS

300

ACC REC - J FORBES

300

JAN 18

ACC PAYABLE S HOIYT

200

PURCHASE RETURN

200

SUBSIDIARY LEDGERS

ACCOUNTS RECEIVABLE

RICHLEY

DATE

DETAILS

$

DATE

DETAILS

$

JAN    15

SALES #510

2900

JAN 13

CASH

2842

JAN 22

SALES # 514

2700

JAN 13

DIS ALL

58

FORBES

DATE

DETAILS

$

DATE

DETAILS

$

JAN 15

SALES #511

1800

JAN 15

SALES RETURN

200

JAN 22

JAN 13

CASH

1568

SALES # 517

6100

JAN 13

DIS ALL

32

DVORAK

DATE

DETAILS

$

DATE

DETAILS

$

JAN 15

SALES #512

1600

SALES # 515

2800

LADEW

DATE

DETAILS

$

DATE

DETAILS

$

JAN 1

BAL B/F

4000

JAN 15

CASH RECEIPT

4000

JAN 15

SALES #513

900

JAN 21

CASH RECEIPT

882

DIS ALLED

18

GARCIA

DATE

DETAILS

$

DATE

DETAILS

$

JAN 1

BAL B/F

2000

JAN 15

CASH RECEIPT

2000

SALES INV # 516

3500

ACCOUNTS PAYABLE

VOGEL

DATE

DETAILS

$

DATE

DETAILS

$

JAN 5

JAN 15

PURCHASES

5000

27

PURCHASES

5400

LYNCH

DATE

DETAILS

$

DATE

DETAILS

$

JAN 5

JAN 15

PURCHASES

2200

27

PURCHASES

1200

D OMARA

DATE

DETAILS

$

DATE

DETAILS

$

JAN 15

CASH PAID

10890

JAN 1

BAL B/F

11000

DIS RECD

110

27

PURCHSES

14500

JAN 23

CASH PAID

16800

DIS RECD

1800

HOIYT

DATE

DETAILS

$

DATE

DETAILS

$

JAN 5

CASH PAID

8820

JAN 1

BAL B/F

9000

DIS RECD

180

JAN 16

PURCHASE RETURN

200

JAN 23

CASH PAID

13916

DIS RECD

284

R MOSES

DATE

DETAILS

$

DATE

DETAILS

$

JAN 21

NOTES PAYABLE

15000

JAN 1

BAL B/F

15000

GENERAL LEDGER

NOTE PAYABLE

DATE

DETAILS

$

DATE

DETAILS

$

JAN 21

R MOSES

15000

JAN 31

INTEREST

50

OFFICE SUPPLIES

DATE

DETAILS

$

DATE

DETAILS

$

JAN 31

B/F

750

CASH

600

CASH

200

1550

DEPRECIATION EQUIP

DATE

DETAILS

$

DATE

DETAILS

$

JAN 31

DEP PROV

1500

INTEREST ON NOTE PAYABLE

DATE

DETAILS

$

DATE

DETAILS

$

JAN 31

NOTE PAYABE

50

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