Packard Company has the following opening account balances in its general and subsidiary ledgers on January 1 and uses the periodic inventory system. All accounts have normal debit and credit balances.

Instructions 

(a) Record the January transactions in the appropriate journal-sales, purchases, cash receipts, cash payments, and general.

(b) Post the journals to the general and subsidiary ledgers. Add and number new accounts in an orderly fashion as needed.

(c) Prepare a trial balance at January 31, 2008, using a worksheet. Complete the worksheet using the following additional information. 

(1) Office supplies at January 31 total \($700.\) 

(2) Insurance coverage expires on October 31, 2008. 

(3) Annual depreciation on the equipment is \($1,500.\) (4) Interest of \($30\) has accrued on the note payable. 

(5) Merchandise inventory at January 31 is \($15,000.\) 

(d) 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.

(e) Prepare and post the 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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General Ledger Account Number Account Title January 1 Opening Balance 101 Cash $33,750 112 Accounts Receivable 13,000 115 Notes Receivable 39,000 120 Merchandise Inventory 20,000 125 Office Supplies 1,000 130 Prepaid Insurance 2,000 157 Equipment 6,450 158 Accumulated Depreciation 1,500 201 Accounts Payable 35,000 301 1. Packard, Capital 78,700 Accounts Receivable Subsidiary Ledger January 1 Opening Customer Balance R. Draves B. Hachinski S. Ingles Accounts Payable Subsidiary Ledger Creditor $1,500 7,500 4,000 S. Kosko R. Mikush D. Moreno January 1 Opening Balance $ 9,000 15,000 11,000