*Accounting Cycle Review 7-01 a1-f2 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 all merchandise sold was 60% of the sales price. Account January 1 Number Account Title Opening Balance 101 Cash $32,250 112 Accounts Receivable 12,500 115 Notes Receivable 39,000 120 Inventory 15,000 126 Supplies 1,500 130 Prepaid Insurance 1,800 157 Equipment 6,900 158 Accumulated DepreciationEquip. 1,600 201 Accounts Payable 37,000 301 Owner's Capital 70,350 January 1 Customer Opening Balance W $1,600 B. Santos 7,800 S. Mahay 3,100 January 1 Customer Opening Balance S. Meek $9,000 R. Moses 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. 00 Receive checks from S. Mahay $3,100 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $245. 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, n/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, invoice 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. 27Purchase merchandise from D. Saito $14,500, terms 1/10, n/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. Your answer is correct. Record the January transactions in a sales journal. (Post entries in the order presented in the problem statement.) Account Receivable Dr. Cost of Good Sold Dr. Date Account Debited Invoice No Ref. Sales Revenue Cr. Inventory Cr. = - V v i/ v V R Beltr- 515 \\/ 2200 1320 v v N H 01 O O H N 0 05 O 2| Your answer is correct. Record the January transactions in a singlecolumn purchases journal. (Post entries in the order presented in the problem statement.) Date Account Credited Terms Ref. Inventory Dr. Accounts Payable Cr. Jan. 5 S. Gamel n/30 6000 Jan. 5 D. Posey n/30
