Presented below are the sales and cash receipts journals for Wesley Co. for its first month of operations.

In addition, the following transactions have not been journalized for February 2014.
Feb. 2 Purchased merchandise on account from T. Valentine $4,600, terms 3/10, n/30.
7 Purchased merchandise on account from B. Kucera for $30,000, terms 1/10, n/30.
9 Paid cash of $1,120 for purchase of supplies.
12 Paid $4,462 to T. Valentine in payment for $4,600 invoice, less 3% discount.
15 Purchased equipment for $7,000 cash.
16 Purchased merchandise on account from E. Nicks $2,400, terms 2/10, n/30.
17 Paid $29,700 to B. Kucera in payment of $30,000 invoice, less 1% discount.
20 Paid cash dividend of $1,100.
21 Purchased merchandise on account from D. Hachey for $7,800, terms 1/10, n/30.
28 Paid $2,400 to E. Nicks in payment of $2,400 invoice.

Instructions
(a) Open the following accounts in the general ledger.
101 .........Cash
112 .........Accounts Receivable
120 .........Inventory
126 .........Supplies
157 .........Equipment
158 .........Accumulated Depreciation—Equipment
201 .........Accounts Payable
311 .........Common Stock
332 .........Cash Dividends
401 .........Sales Revenue
414 .........Sales Discounts
505 .........Cost of Goods Sold
631 .........Supplies Expense
711 .........Depreciation Expense
(b) Journalize the transactions that have not been journalized in a one-column purchases journal and the cash payments journal (Illustration).
(c) Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.
(d) Post the individual entries and totals to the general ledger.
(e) Prepare a trial balance at February 28, 2014.
(f) Determine that the subsidiary ledgers agree with the control accounts in the general ledger.
(g) The following adjustments at the end of February are necessary.
(1) A count of supplies indicates that $300 is still on hand.
(2) Depreciation on equipment for February is $160.
Prepare the adjusting entries and then post the adjusting entries to the general ledger.
(h) Prepare an adjusted trial balance at February 28,2014.

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S1 Accounts Receivable Dr Cost of Goods Sold Dr SALES JOURNAL Date Account Debited Ref Sales Revenue Cr 5,500 6,500 8,400 7,000 27,400 Inventory Cr 3,630 4,290 5,544 4,620 18,084 Feb. 3 S. Armour 9 M. Barajas 12 V. Ciatti 26 A. Dobbs CASH RECEIPTS JOURNAL CR1 Other Cost of Goods Sales Accounts Sales Cash Discounts Receivable RevenuAccounts Sold Dr Date Account Credited Ref Inventory Cr r. Feb. Common Stock 30,000 5,400 5,445 150 6,500 47,495 30,000 5,400 3,564 13 S. Armour 18 Inventory 26 M. Barajas 5,500 150 6,500 12,000 5,400 30,150 3,564