South Coast Boards Co. is a merchandising business. The account balances for South Coast Boards Co. as of July 1, 2010 (unless otherwise indicated), are as follows:

During July, the last month of the fiscal year, the following transactions were completed:
July 1. Paid rent for July, $5,000.
3. Purchased merchandise on account from Belmont Co., terms 2/10, n/30,
FOB shipping point, $40,000.
4. Paid freight on purchase of July 3, $600.
6. Sold merchandise on account to Modesto Co., terms 2/10, n/30, FOB shipping point, $25,000. The cost of the merchandise sold was $15,000.
7. Received $26,500 cash from Yuba Co. on account, no discount.
10. Sold merchandise for cash, $80,000. The cost of the merchandise sold was $50,000.
13. Paid for merchandise purchased on July 3, less discount.
14. Received merchandise returned on sale of July 6, $6,000. The cost of the merchandise returned was $4,500.
15. Paid advertising expense for last half of July, $7,500.
16. Received cash from sale of July 6, less return of July 14 and discount.
19. Purchased merchandise for cash, $36,000.
19. Paid $18,000 to Bakke Co. on account, no discount.
20. Sold merchandise on account to Reedley Co., terms 1/10, n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $25,000.
21. For the convenience of the customer, paid freight on sale of July 20, $1,100.
21. Received $17,600 cash from Owen Co. on account, no discount.
21. Purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB destination, $20,000.
24. Returned $2,000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26. Refunded cash on sales made for cash, $3,000. The cost of the merchandise returned was $1,800.
28. Paid sales salaries of $22,800 and office salaries of $15,200.
29. Purchased store supplies for cash, $2,400.
30. Sold merchandise on account to Whitetail Co., terms 2/10, n/30, FOB shipping point, $18,750. The cost of the merchandise sold was $11,250.
30. Received cash from sale of July 20, less discount, plus freight paid on July 21.
31. Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (✓) in the Posting Reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare an unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

5. Optional: Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. See Appendix C for how to prepare an end-of-period spreadsheet (work sheet) for a merchandising business.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a statement of owner's equity, and a balance sheet.
9. Prepare and post the closing entries. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owner's capital account.
10. Prepare a post-closing trialbalance.

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$ 63,600 110 Cash 112 Accounts Receivable 153,900 602,400 16,800 11,400 469,500 Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Accounts Payable Salaries Payable Rocky Hansen, Capital, August 1, 2009 Rocky Hansen, Drawing Income Summary 115 116 117 123 124 56,700 96,600 210 211 310 555,300 135,000 311 312 410 Sales 3,221,100 92,700 59,400 1,623,000 334,800 81,000 411 Sales Returns and Allowances Sales Discounts 412 510 Cost of Merchandise Sold Sales Salaries Expense 520 521 Advertising Expense Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense 522 523 529 12,600 182,100 83,700 530 Office Salaries Expense Rent Expense Insurance Expense Miscellaneous Administrative Expense 531 532 539 7,800