Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts lon payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger Rn, ota for Bluma are indicated in the working papers. Presented below are a series of transactions for Bluma Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price.

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, 2008, 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 October 31, 2008.

(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.

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Jan. 3 Sell merchandise on account to B. Richey $3,100, invoice no. 510, and to J. Forbes $1,800, invoice no. 511. 5 Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.