This company uses the perpetual system of inventory. Check for these figures. Ca
ID: 2510838 • Letter: T
Question
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.
Explanation / Answer
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
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