ACC 121 Practice Set transactions Summer 2020 (Use the working papers provided by your instructor to work this project.) Polaris Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary kdger. Bakances related to both the general kager and the subsidiary lediger for Polaris are indicated in the working papers. Below are a series of transactions for Polaris Co. for the month of January. Credit sales tems are 2/10,n30. The cost of all merchandise sold was 46% of the sales price. Jan.3 Sell merchandise on account to S. Jones $3,100, imvoice no. 825, and to B. Smith $1,800, invoice 3 Purchase merchandise from N. Cairns $5,000 and B. Tanz 2.200, terms/30. 7 Receive checks from D. Brown 54,000 and H. Stone $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $235. 9 Send checks to P. Winston for 59,000 less 2% cash discount, and to C.Boxer for $11.000 less 1% ch discount 9 Issue credit of $300 to B. Smith for merchandise retumed. 10 Summary daily cash sales total $15.500 11 Sell merchandise on account to M. Fergus $1.600, invoice no. 127, and to D. Brown $900, imvoice 12 Payront of $1,000 for January 13 Receive payment in full from Jones and with less cash discounts. 15 Withdrawal of 8800 cash by Betel for personal use 15 Post all entries to the subsidiary lodgers 16 Purchase merchandise from C. Boxer $18,000, tennes 10, n30 P. Winston $14,200, torms 2010, w/30, and N. Cairns $1,500,terms 130. 17 Pay $400 cash for office supplies. 18 Return $200 of merchandise to P. Winston and receive credit 20 Summary daily cash sales total $20,100 21 Issue $15,000 note, maturing in 90 days, to K. Greene in payment of balance due 21 Receive payment in full from D. Brown less cash discount. 22 Sell merchandise on account to S. Jones $2.700, imvoice no. 829, and to M. Fergus 51,300, invoice no 830 22 Post all entries to the subsidiary ledgers 23 Send checks to C.Boxer and P. Winston in full payment less cash discounts. 23 Sell merchandise on account to H. Stone $3,500, invoice no. 831, and to B. Smith 56,100, invoice 27 Purchase merchandise from C. Boxer $14,500, termes 1/10, n00, B. Tana $1,200, terms and N. Caims $5,000, terms 130. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies 31 Summary daily cash sales total 521,300 31 Paysalaries and wages of S8,100. (continued) Instructions: (a) Record the January transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at January 31, 2020, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at January 31 total $900. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1,500. 4. Interest of $75 has accrued on the note payable. (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 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. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of January 3. Gross Profit Rate 4. Working Capital ACC 121 Practice Set transactions Summer 2020 (Use the working papers provided by your instructor to work this project.) Polaris Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary kdger. Bakances related to both the general kager and the subsidiary lediger for Polaris are indicated in the working papers. Below are a series of transactions for Polaris Co. for the month of January. Credit sales tems are 2/10,n30. The cost of all merchandise sold was 46% of the sales price. Jan.3 Sell merchandise on account to S. Jones $3,100, imvoice no. 825, and to B. Smith $1,800, invoice 3 Purchase merchandise from N. Cairns $5,000 and B. Tanz 2.200, terms/30. 7 Receive checks from D. Brown 54,000 and H. Stone $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $235. 9 Send checks to P. Winston for 59,000 less 2% cash discount, and to C.Boxer for $11.000 less 1% ch discount 9 Issue credit of $300 to B. Smith for merchandise retumed. 10 Summary daily cash sales total $15.500 11 Sell merchandise on account to M. Fergus $1.600, invoice no. 127, and to D. Brown $900, imvoice 12 Payront of $1,000 for January 13 Receive payment in full from Jones and with less cash discounts. 15 Withdrawal of 8800 cash by Betel for personal use 15 Post all entries to the subsidiary lodgers 16 Purchase merchandise from C. Boxer $18,000, tennes 10, n30 P. Winston $14,200, torms 2010, w/30, and N. Cairns $1,500,terms 130. 17 Pay $400 cash for office supplies. 18 Return $200 of merchandise to P. Winston and receive credit 20 Summary daily cash sales total $20,100 21 Issue $15,000 note, maturing in 90 days, to K. Greene in payment of balance due 21 Receive payment in full from D. Brown less cash discount. 22 Sell merchandise on account to S. Jones $2.700, imvoice no. 829, and to M. Fergus 51,300, invoice no 830 22 Post all entries to the subsidiary ledgers 23 Send checks to C.Boxer and P. Winston in full payment less cash discounts. 23 Sell merchandise on account to H. Stone $3,500, invoice no. 831, and to B. Smith 56,100, invoice 27 Purchase merchandise from C. Boxer $14,500, termes 1/10, n00, B. Tana $1,200, terms and N. Caims $5,000, terms 130. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies 31 Summary daily cash sales total 521,300 31 Paysalaries and wages of S8,100. (continued) Instructions: (a) Record the January transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at January 31, 2020, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at January 31 total $900. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1,500. 4. Interest of $75 has accrued on the note payable. (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 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. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of January 3. Gross Profit Rate 4. Working Capital