* Accounting Cycle Review 7-01 a 1-f2 Crane Co. uses a perpetual Inventory system and both an accounts receivable and an accounts payable subsidlary ledger. Balances related to both the general ledger and the subsidiary ledger for Crane are Indicated in the working papers. Presented below are a series of transactlons for Crane Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price. GENERAL LEDGER Account Number 101 112 115 120 126 130 Account Title Cash Accounts Recevable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depredation Equip. Accounts Payable Owner's Capital January 1 Opening Balanca $32,250 12,500 39,000 15,000 1,500 1,800 6,900 1.600 37,000 70,350 157 158 201 301 Schedule of Accounts Receivable (from accounts receivable subsidiary Indger) January 1 Customer Opening Balance $1,600 B. Santos 7,850 5. Mahay 3,100 R. Beltre Schedule of Accounts Payable (from accounts payable subsidiary lodger) January 1 Custome Opening Balance S. Meek $9,000 R. Moses 16,000 D. Salto 12,000 Jan. 3 5 7 8 9 9 10 11 12 13 15 15 15 17 Sell merchandise on account to B. Corpas $3,000, Invoice no. 510, and to J. Revere $1,600, Invoice no. 511. Purchase merchandise from S. Gamal $6,000 and D. Posey $2,800, terms 1/30. Recelve checks from S. Mahay $3,100 and B. Santos $2,000 after discount period has lepsed. Pey freight on merchandise purchased $245. Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Salto for $12,000 165 1% cash discount. Iegue credit of $300 to). Revere for merchandise returned. Dally cash sales from January 1 to January 10 total $16,000. Make one journal entry for these sales. Sel merchandise on account to R. Beltre $1,200, invoice no. 512, and to S. Mahay $900, invoice no. 513. Pay rent of $1,400 for January. Receive payment in full from B. Corpas and J. Revere less cash discounts. Withdraw $800 cash by M. Crane for personal use. Post all entries to the subsidiary ledgers. Purchase marchandise from D. Salto $15,000, terms 1/10, 1/30; S. Meek $14,600, terms 2/10, 1/30; and S. Gamel $1,500, terms /30. Pay $700 cash for office supplies. Return $300 of merchandise to S, Meek and receive credit, Daily cash sales from January 11 to January 20 total $20,600. Make one joumel entry for these sales. ISSUR $16,000 note, maturing In 90 days, to R. Moses In payment of balancs dur. Receive payment in full from $. Mahay less cash discount. Sell merchandise on account to B. Corpes $2,700, invoice no. 514, and to R Beltre $2,200, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Salto and S. Meek in full payment less cash discounts. Sell merchandise on account to B. Santos $3,200, Involce no. 516, and to J. Revere $6,800, Invoice no. 517. Purchase merchandise frokri D. Saito $14,500, terms 1/10, n/30; D. Posey $3,300, berms 1/30; and S. Gamel $5,200, terms n/30. Post all entries to the subsidiary ledgers, Pay $200 cash far office supplies. Dally cash sales from January 21 to January 31 total $21,000. Make one journal entry for these sales. Pay sales salaries $4,400 and office salaries $3,200. 18 20 21 21 22 22 25 27 27 28 31 31 Your answer is correct. Record the January transactions in a sales journal. (Post antries in the order presented in the problem statement.) Sal Journal Si Account Recevable Dr. Coat of Good Sold Dr. Date Account Debited Involca No. Ref. Sales Revenue Cr. Irwantory Or. v ven. 3 B. Carpas 510 3000 1800 uan. 3 1. Revere 1511 11600 960 Jan 11 R. Beltre 1512 1200 120 wan. 11 S. Mahay 513 900 540 uan, 22 B, Carpas 514 2700 1620 van. 22 IR. Beltre 1515 2200 11320 wan. 25 B. Santos 1516 3200 1920 Jan. 25 J. Revere 1517 6800 4080 21600 112960 Your answer is correct. Record the January transactions in a singit-column purchases Journal. (Post entries in the order presented in the problem statement.) Purchases Journal P1 Date Inventory Dr. Account Credited Terms Ref. Accounts Payable Cr. van. 5 S. Gamal 30 16000 Uan. 5 D. Posey 30 2800 Jan. 16 10. Salto 1/10, 1/30 115000 an. 16 S. Meek 2/10, 1/30 114500 van. 16 S. Camel /30 1500 uan. 27 D. Salto 1/10, 1/30 114500 Jan. 27 D. Popey n/30 13300 uan. 27 S. Gamel 1/30 5200 02900 Your answer is correct. Record the January transactions in a cash receipts journal. (Post entries to the order presented in the problem statement.) Cash Receipts Journal CR Sales Date Sale Discounts Dr. Revenue Other Accounts Cost of Good Sold Dr. Inventory Or. Account Crodhod Cr. Ref. Cash Dr. 13100 2000 Dan. 7 S. Mahay B, Santos Account Recevable cr. (3100 2000 wen, 1 Jan. 10 116000 [16000 12940 19600 U van 13 B. Corpas 100 3000 Jan. 13 J. Revere 261 1300 (1274 120600 wan. 20 20500 12360 U 17 Jan. 21 S. Mahay B82 18 1900 wan. 31 2100D 21000 12600 07796 104 10300 157600 34560 Your answer is partially correct. Try again. Record the January transactions in a cash payments joumal. (Post entries in the order presented in the problem statement.) Cash Payments Journal CP1 bute Other Accounts Dr. Supplies Dr. Account Debited Accounts Payable Dr. Ref. Jen. B Inventory 120 245 Inventory Cash Cr. Cr. 0 245 8920 Dan. 9 5. Meek 9000 uan. 9 D. Salto V 22000 11880 uan. 12 Rent Expense 729 1400 1400 800 van, 15 Owner's Drawings 306 | 800 yen 17 700 700 Man. 23 D. Salto v 125000 14580 Jan. 23 S. Meek 124300 14014 wan. 28 u 7600 200 U 200) 7600 uan, 31 Salaries and Wages Expense 627 10045 SD300 1900 60509 Your answer le partially correct. Try again. Record the January transactions in a two-column general journal. (Credit account titles are automatically indented when the amount is anteed. Do not indent marialy. Record journal entries in the order presented in the problem.) Date Account Troles and Eplanation Debt Credit uan. Sales Returns and Allowances 1300 Accounts Receivable J 300 (Issued credit for merchandise returned. Uan. 9 Inventory 180 Cost of Goods Sold 180 (Cost of merchandise returned.) Jan. 18 Accounts Payable 30D 1 inventory 300 (Received credit for retumec goods.) Uan. 21 Notes Payable 1600D Accounts Payable (16000 (Payment of balance duc.) Your answer is partially correct. Try again. Post the journals to the general ledger (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash Date Explanation Ref. Debit No. 101 Balance Credit Jan. 1 Belande 31 CR1 1 000 31 CPI No. 112 Account Date Explanation Ref. Debit Credit Balance kan 1 lela 1 00 31 $1 31 CRI 9 GI, Notes Rucavabla Date Explanation No. 115 Balance Ref. Debit Credit Jan. 1 Balance 17 Inventory Det. No. 120 Balang Explanation Ref. Dobit Creditt Jan. 1 Selance U 31 P1 31 51 31 CR1 CP1 31 I. 01.0.1); CD||| OO CP1 9 G1 18 G1 Supplies Date No. 125 Balanga Explanation Ref. Debit Credit Jan. 1 Balance 31 CP1 ]]]]]]]]]]]]]]]]]]]]]] cation nt Credit Cent Credit LL C | | Credit Dobit Dubit bit Debt Debit TOD Debit - 1994 C CR1 CRI Explanation n. 1 5 to 3 N OUERS Ret. 0.00 0.00 0.00 0.00 1 0 00:10:00 10:00 (1 C0C: (: 0C: 0[: [00: 1 (: 000 Credit HPS CP1 16 a O 1.1. CPL P1 O 000: [0 1.0.1'01 27 P1 your answer is ootally correct. To solo. Prepare a trial balance at January 31, 2020, in the trial ba ... 2. Insurance coverage expires on October 31, 2020 3. Annual depreciation on the equipment is $1,800. 4. Interest of $50 hes accrued an the note payable. CRANE COMPAN Adjustments Adjusted Income Balance Sheet Trial Balance Mr.Ch Account Tues Dr. Or. Cash Accounts Recalable 0 Notes Receivable Inventory Supplies Prepold Insurance nuolato (dd100 0.0.000 Equipment Accum. Depreciation-Equipment Notes Payable Accounts Payable Interest Payable UUUUU Owner's Capital Owner's Drawings Sales Revenue Sales Retums and Allowances [] [] Sales Discounts 00000.0 Cost of Goods Sok Salaries and Wages Expense Rent Expense