Review the opening account balances in Winters Company's general and subsidiary ledgers on January 1, 2017. All

Question:

Review the opening account balances in Winters Company's general and subsidiary ledgers on January 1, 2017. All accounts have normal debit and credit balances. Winters uses a perpetual inventory system. The cost of all merchandise sold was 40% of the sales price.

Wmters January transactions follow:
Jan. 3 Sold merchandise on credit to B. Sots $3,100. invoice no. 510. and J. Ebel $1,800. invoice no. 511.
5 Purchased merchandise on account from Weh Wares for $3,000 and Lout Supplies for $2,700.
7 Received cheques for $5,000 from S. Tang and $2,000 from B. lacovetti on accounts.
8 Paid freight on merchandise purchased, $180.
9 Sent cheques to Liazuk Co. for $10,000 and Nguyen & Son for $11,000 in full payment of accounts. 9 Issued credit memo for 5400 to J. Ebel fur merchandise returned. The merchandise was restored to inventory.
10 Summary cash sales totalled $16,500.
11 Sold merchandise on credit to it Drava for $1,900, invoice net 512, and to S. Tang for $900, imoicena 513.
15 Withdrew $2,000 cash for Winters's personal use.
16 Purchased merchandise on account from Nguyen & Son for $15,000, from Liazuk Co. for $13,900, and from Welz Wares for $1,500.
17 Purchased supplies on account from Laux Supplies, $400.
18 Returned $500 of merchandise to Liazuk and received credit.
20 Summary cash sales totalled $17,500.
21 Issued $15,000 note to Mikush Bros. in payment of balance due. The note bears an interest rate of 10% and is due in three months.
21 Received payment in full from S. Tang.
22 Sold merchandise on credit to & Soto for $1,700, invoice no 514, and to R. Draves for $800, invoice no 515.
23 Sent cheques to Nguyen & Son and Liazuk Ca in full payment of accounts.
25 Sold merchandise on credit to B. Jacovettl for 53.500. invoice net 516, and to J. Ebel for $6,100, invoice net 517.
27 Purchased merchandise on account from Nguyen & Son for $14.500. from Laux Supplies for $1,200. and from Welt: Wares for $2,800.
28 Purchased supplies on account from Laux Supplies. $800.
31 Summary cash sales totalled $19,920. 31 Paid salaries of $6,900.
31 Received payment in full from B. Soto and J. Ebel on account.
In addition to the accounts identified in the trial balance, the chart of accounts shows the following No. 200 Notes Payable. No. 230 Interest Payable, No. 300 Income Summary, Na 310 A. Winters, Drawings, No. 401 Sales. No. 410 Sales Returns and Allowances, No. 505 Cost of Goods Sold, No. 711 Depreciation Expense, No. 718 Inter-est Expense, No. 722 Insurance Expense. No. 725 Salaries Expense, and No. 728 Supplies Expense.
Instructions
(a) Record the January transactions in the appropriate journal-sales, purchases, cash receipts, cash payments, and general.
(b) Enter the opening balances in general and subsidiary ledger accounts. Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed.
(c) Prepare a nun adjusted trial balance at January 31, 2017. Determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
(d) Prepare and post adjusting journal entries. Prepare an adjusted trial balance, using the following information:
1.Supplies at January 31 total $700.
2. Insurance coverage expires on September 30, 2017.
3. Annual depreciation on the building is $6,000 and on the equipment is $1,500.
4. Interest of $45 has accrued on the note payable.
5. A physical count of merchandise inventory has found $44,850 of good son hand.
(e) Prepare a multiple-step income statement and a statement of owner's equity for January, and a classified balance sheet at the end of January.
(f) Prepare and post the closing entries.
(g) Prepare a post-closing trial balance.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...