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.

                

Jan.   3 Sell merchandise on account to B. Remy $3,100, invoice no. 510, and J. Fine $1,800, invoice no. 511.
         5 Purchase merchandise on account from S. Yost $3,000 and D. Laux $2,700.

         7 Receive checks for $4,000 from S. Ingles and $2,000 from B. Hachinski.
         8 Pay freight on merchandise purchased $180.
         9 Send checks to S. Kosko for $9,000 and D. Moreno for $11,000.
         9 Issue credit of $300 to J. Fine for merchandise returned.
        10 Summary cash sales total $15,500.
        11 Sell merchandise on account to R. Draves for $1,900, invoice no. 512, and to S. Ingles $900, invoice no. 513.
Post all entries to the subsidiary ledgers.
        12 Pay rent of $1,000 for January.
        13 Receive payment in full from B. Remy and J. Fine.
        15 Withdraw $800 cash by I. Packard for personal use.
        16 Purchase merchandise on account from D. Moreno for $15,000, from S. Kosko for $13,900, and from S. Yost for $1,500.
        17 Pay $400 cash for supplies.
        18 Return $200 of merchandise to S. Kosko and receive credit.
        20 Summary cash sales total $17,500.
        21 Issue $15,000 note to R. Mikush in payment of balance due.
        21 Receive payment in full from S. Ingles.
Post all entries to the subsidiary ledgers.
        22 Sell merchandise on account to B. Remy for $3,700, invoice no. 514, and to R. Draves for $800, invoice no. 515.
        23 Send checks to D. Moreno and S. Kosko in full payment.
        25 Sell merchandise on account to B. Hachinski for $3,500, invoice no. 516, and to J. Fine for $6,100, invoice no. 517.
        27 Purchase merchandise on account from D. Moreno for $12,500, from D. Laux for $1,200, and from S. Yost for $2,800.
        28 Pay $200 cash for offi ce supplies.
        31 Summary cash sales total $22,920.
        31 Pay sales salaries of $4,300 and offi ce salaries of $3,600.

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, 2012, using a worksheet. Complete the worksheet using the following additional information.

(1) Supplies at January 31 total $700.
(2) Insurance coverage expires on October 31, 2012.
(3) Annual depreciation on the equipment is $1,500.
(4) Interest of $30 has accrued on the note payable.
(5) Inventory at January 31 is $15,000.

  (d) Prepare a multiple-step income statement and an owner’s equity statement 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.