Accounting Cycle Review 7-01 a1-12 Crane Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary 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 transactions for Crane Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of al merchandise sold was 60% of the sales price. GENERAL LEDGER January 1 Account Opening Number Account Title Balance 101 Cash $32,250 112 Accounts Receivable 12,500 115 Notes Receivable 39,000 Inventory 15,000 Supplies 1,500 130 Prepaid Insurance 1,800 157 Equipment 6,900 Accumulated 158 Depreciation-Equip 1,600 201 Accounts Payable 37,000 Owner's Capital 70,350 120 126 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,600 B. Santos 7.800 S. Mahay 3,100 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Opening Balance S. Meek $9,000 R. Moses Customer 16,000 D. Saito 12,000 Jan. 3 Sell merchandise on account to B. Corpas $3,000, invoice no. 510, and to J. Revere $1,600, invoice no. 511. 5 Purchase merchandise from S. Gamel $6,000 and D. Posey $2,800, terms n/30. 7 Receive checks from S. Mahay $3,100 and B. Santos $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $245. 9 Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $12,000 less 1% cash discount. 9 Issue credit of $300 to J. Revere for merchandise returned. 10 Daily cash sales from January 1 to January 10 total $16,000. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre $1,200, invoice no. 512, and to S. Mahay $900, Invoice no. 513. 12 Pay rent of $1,400 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Crane for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $15,000, terms 1/10,n/30; S. Meek $14,600, terms 2/10, 1/30; and S. Gamel $1,500, terms n/30. 17 Pay $700 cash for office supplies. 18 Return $300 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $20,600. Make one journal entry for these sales. 21 Issue $16,000 note, maturing in 90 days, to R. Moses in payment of balance due. 21 Receive payment in full from S. Mahay less cash discount. 22 Sell merchandise on account to B. Corpas $2,700, Invoice no. 514, and to R. Beltre $2,200, Involce no. 515. 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek in full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,200, invoice no. 516, and to J. Revere $6,800, invoice no. 517. 27 Purchase merchandise from D. Salto $14,500, terms 1/10, 1/30; D. Posey $3,300, terms n/30; and S. Gamel $5,200, terms n/30. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Daily cash sales from January 21 to January 31 total $21,000. Make one journal entry for these sales. 31 Pay sales salaries $4,400 and office salaries $3,200. Record the January transactions in a sales journal. (Post entries in the order presented in the problem statement.) Sales Journal s1 Account Receivable Dr. Cost of Good Sold Dr. Date Account Debited Invoice No. Ref. Sales Revenue Cr. Inventory Cr. 4 Record the January transactions in a single-column purchases journal. (Post entries in the order presented in the problem statement.) Purchases Journal P1 Date Inventory Dr. Ref. Accounts Payable Cr. Account Credited Terms n/30 n/30 1/10, n/30V 2/10, n/30 n/30 1/10, n/30V n/30 n/30 Record the January transactions in a cash receipts journal. (Post entries in the order presented in the problem statement.) Cash Receipts Journal CR1 Sales Discounts Date Cash Dr. Sales Other Revenue Accounts Cost of Good Sold Dr. Inventory Cr. Account Credited Ref. Dr. Account Receivable Cr. Cr. Cr. Record the January transactions in a two-column general journal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (Issued credit for merchandise returned.) (Cost of merchandise returned) (Received credit for returned goods.) (Payment of balance due.) Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash No. 101 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance > 32250 31 CR1 21000 31 CP1 7600 Accounts Receivable No. 112 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance 31 S1 31 CR1 9 G1 Notes Receivable Date No. 115 Credit Balance Explanation Ref. Debit Debit Jan. 1 Balance Inventory No. 120 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance 31 P1 31 S1 31 CR1 8 CP1 31 CP1 9 GI 18 GI Supplies No. 125 Date Explanation Ref. Debit Debit Credit Balance Jan. 1 Balance 31 CP1 Prepaid Insurance No. 130 Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash No. 101 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance > 32250 31 CR1 21000 31 CP1 7600 Accounts Receivable No. 112 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance 31 S1 31 CR1 9 G1 Notes Receivable Date No. 115 Credit Balance Explanation Ref. Debit Debit Jan. 1 Balance Inventory No. 120 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance 31 P1 31 S1 31 CR1 8 CP1 31 CP1 9 GI 18 GI Supplies No. 125 Date Explanation Ref. Debit Debit Credit Balance Jan. 1 Balance 31 CP1 Prepaid Insurance No. 130 Prepaid Insurance No. 130 Date Explanation Ref. Debit Credit Balance Jan. 1 Balance Equipment Date No. 157 Credit Balance Explanation Ref. Debit Jan. 1 Balance Accumulated Depreciation Equipment Explanation No. 158 Date Ref. Debit Credit Balance Jan. 1 Balance No. 200 Notes Payable Explanation Date Ref. Debit Credit Balance Jan. 21 G1 Accounts Payable Date Explanation No. 201 Balance Ref. Debit Credit Jan, 1 Balance