(a) Record the January transactions in a two-column general journal below. Gener
ID: 2577202 • Letter: #
Question
(a) Record the January transactions in a two-column general journal below.
General Journal
G1
Date
Account Titles
Ref
Debit
Credit
Adjusting Entries
Check figures:
Cash Receipts Journal, total Cash DR: $ 70,348
Cash Payments Journal, total Cash CR: 62,060
Net Income: 25,218 Total Assets: 149,568
Total Post Closing Trial Balance: 151,193
Sun & Surf Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sun & Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 55% of the sales price.
Jan.3 Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826.
5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30.
7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235.
9 Send checks to K. Xerxes for $9,000 less 2% cash discount, and to T. Caper for $11,000 less 1% cash discount.
9 Issue credit of $300 to C. Ryder for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Arnold $900, invoice no. 828.
12 Pay rent of $1,000 for January.
13 Receive payment in full from M. Knast and C. Ryder less cash discounts.
15 Withdrawal of $800 cash by J. Sandy for personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to K. Xerxes and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due.
21 Receive payment in full from V. Arnold less cash discount.
22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830.
22 Post all entries to the subsidiary ledgers.
23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts.
25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832.
27 Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $275 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay salaries and wages of $8,100. (continued)
Page 2 of 2
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, 2017, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.
1. Office supplies at January 31 total $900.
2. Insurance coverage expires on September 30, 2017.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
(d) Prepare a multiple-step income statement and an 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 subsidiary ledgers agree with the control accounts in the general ledger.
General Ledger
Cash
No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 37,150
Accounts Receivable
No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 13,000
Notes Receivable
No. 115
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 39,000
Inventory
No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 17,795
Office Supplies
No. 125
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 1,200
Prepaid Insurance
No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 2,205
Equipment
No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 6,450
Accumulated Depreciation - Equipment
No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 1,500
Notes Payable
No. 200
Date
Explanation
Ref.
Debit
Credit
Balance
Accounts Payable
No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 35,000
Interest Payable
Date
Explanation
Ref.
Debit
Credit
Balance
J. Sandy, Capital
No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
$ 80,300
J. Sandy, Drawing
No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Income Summary
No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Sales
No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
Sales Returns and Allowances
No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
Sales Discounts
No. 414
Date
Explanation
Ref.
Debit
Credit
Balance
Cost of Goods Sold
No. 505
Date
Explanation
Ref.
Debit
Credit
Balance
Salaries and Wages Expense
No. 627
Date
Explanation
Ref.
Debit
Credit
Balance
Depreciation Expense
No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Interest Expense
No. 718
Date
Explanation
Ref.
Debit
Credit
Balance
Insurance Expense
No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Office Supplies Expense
No. 728
Date
Explanation
Ref.
Debit
Credit
Balance
Rent Expense
No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
General Journal
G1
Date
Account Titles
Ref
Debit
Credit
Adjusting Entries
Explanation / Answer
Note :- As there are multiple questions I have answered first one with all sub parts(beyond 4).
Date Accounts Debit$ Credit$ Jan.3 Account receivables $ 6,860 Sales Discount $ 140 Sales $ 7,000 (recording sales of merchandise on account to M Knast and C Ryder) Cost of goods sold $ 3,850 Inventory $ 3,850 (recording cost of goods sold ) Jan.5 Inventory $ 7,200 Accounts Payable $ 7,200 (recording of purchase of merchandise from R Differ and N Sova) Cash $ 6,000 Accounts receivables $ 6,000 (recording of checks received from Arnold and Tan) Note: Purchase terms is not provided, hence no sales discount entry recorded) Jan.8 Inventory $ 235 Cash $ 235 (recording of payment of freight under) Jan.9 Accounts payable (Xerxes $9,000+T Caper $11,000) $ 20,000 Discount allowed ($9,000 @2% and $11,000@ 11%) $ 290 Cash $ 19,710 (recording payment made to vendor net of cash discount) Jan.9 Sales $ 300 Account receivables $ 300 (recording sales returns form C Ryder on earlier purchase made) Jan.10 Cash $ 15,500 Sales $ 15,500 (recording cash sales) Jan.11 Account receivables $ 2,450 Sales Discount $ 50 Sales $ 2,500 (recording sales of merchandise on account to D Gallagher and V Arnold) Jan.12 Rent expense $ 1,000 Cash $ 1,000 (recording of rent expenses for January) Jan.13 Cash $ 6,860 Account receivables $ 6,860 (recording of cash receipt from sales of merchandise on account to M Knast and C Ryder) Jan .15 J Sandy Drawings $ 800 Cash $ 800 (recording of drawings by J sandy for personal use) Jan .16 Inventory (18000+14200+1500) $ 33,700 Purchase discount (180+284) $ 464 Accounts Payable $ 33,236 (recording of purchase of merchandise from T. Caper, K. Xerxes and R Differ and discount received) Jan.17 Offices supplies $ 400 Cash $ 400 (recording of payment to office supplies) Jan.18 Accounts payable $ 200 - Debit $200 Inventory $ 200 (recording sales returns form K. Xerxes on earlier purchase made) Jan .19 Cash $ 20,100 Sales $ 20,100 (recording cash sales) Jan.21 Notes Receivable $ 15,000 - Debit $15,000 Cash $ 15,000 (recording of issue of note to M Griffen for period of 90 days) Jan.21 Cash $ 2,450 Account receivable $ 2,450 (recording of receipt of Payment from V Arnold on account purchase made on Jan 11) Jan.22 Account receivable $ 3,920 Sales Discount $ 80 Account receivables - Debit $3,920 Sales (2700+1300) $ 4,000 (recording sales of merchandise on account to M Knast and D. Gallagher) Jan.23 Accounts Payable $ 31,736 Accounts Payable - Debit $31,736 Cash $ 31,736 (recording of payment towards purchase net of discount) Jan.25 Account receivable $ 9,408 Account receivables - Debit $9,408 Sales Discount $ 912 Sales $ 10,320 Sales Discount - Debit $192 (recording sales of merchandise on account to I. Tan and C Ryder) Jan.27 Inventory (14500+1200+5400) $ 21,100 Inventory - Debit $14,500 Purchase discount $ 145 Accounts Payable $ 20,955 To Purchase discount - Credit $145 (recording of purchase of merchandise from T. Caper, K. N Sova and R Differ and discount) Jan.28 Offices supplies $ 275 Cash $ 275 Offices supplies Debit $275 (recording of payment to office supplies) Jan.31 Cash - Debit $20,300 Cash $ 21,300 Sales $ 21,300 To Sales - Credit $20,300 (recording cash sales) Jan.31 Salaries and Wages paid $ 8,100 - Debit $8,100 Cash $ 8,100 (recording of salary and wages paid for January month)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.