The post-closing trial balance for Cortez Co. is as follows.

The subsidiary ledgers contain the following information: (1) accounts receivable— J. Anders \($2,500,\) E Cone \($7,500,\) T. Dudley \($5,000;\) (2) accounts payable—J. Feeney \($10,000,\) D. Goodman \($18,000,\) and K. Inwood \($15,000.\) The cost of all merchandise sold was 60% of the sales price.

The transactions for January 2009 are as follows.

Instructions

(a) Open general and subsidiary ledger accounts for the following.

(b) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal (see Illustration 7-9), a cash payments journal (see Illustration 7-16), and a general journal.

(c) Post the appropriate amounts to the general ledger.

(d) Prepare a trial balance at January 31, 2009.

(e) Determine whether the subsidiary ledgers agree with controlling accounts in the general ledger.

Illustration 7-9

Illustration 7-16

Transcribed Image Text:

CORTEZ CO. Post-Closing Trial Balance December 31, 2008 Cash Accounts Receivable Notes Receivable Merchandise Inventory Equipment Accumulated Depreciation Equipment Accounts Payable B. Cortez, Capital Debit Credit $ 41,500 15,000 45,000 23,000 6,450 $ 1,500 43,000 86,450 $130,950 $130,950