Accounting Cycle Review 7-01 a1-f2 Pharoah 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 Pharoah are indicated in the working papers. Presented below are a series of transactions for Pharoah 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 101 112 115 120 126 130 157 158 201 301 Account Title Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital January 1 Opening Balance $38,250 12,300 42.000 15,500 1,500 2.000 8,700 1,600 37,000 81,650 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,600 B. Santos 7.300 S. Mahay 3,400 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek 59,000 R. Moses 17,000 D. Saito 11,000 Jan. 3 5 N 7 8 9 9 10 11 12 13 15 15 16 17 Sell merchandise on account to B. Corpas $3,400, invoice no. 510, and to J. Revere $2,000, invoice no. 511. Purchase merchandise from S. Gamel $6,000 and D. Posey $2,900, terms n/30. Receive checks from S. Mahay $3,400 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $225. Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $11,000 less 1% cash discount. Issue credit of $300 to J. Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $17,500. Make one journal entry for these sales. Sell merchandise on account to R. Beltre $1,600, 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 ). Revere less cash discounts. Withdraw $800 cash by M. Pharoah for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; S. Meek $14,500, terms 2/10, n/30; and S. Gamel $1,500, terms n/30. Pay $400 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $22,100. Make one journal entry for these sales. Issue $17,000 note, maturing in 90 days, to R. Moses in payment of balance due. Receive payment in full from S. Mahay less cash discount. Sell merchandise on account to B. Corpas $2,900, invoice no. 514, and to R. Beltre $2,500, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Saito and S. Meek in full payment less cash discounts. Sell merchandise on account to B. Santos $3,900, invoice no. 515, and to J. Revere $6,100, invoice no. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; D. Posey $3,300, terms n/30; and S. Gamel $5,700, terms n/30. Post all entries to the subsidiary ledgers. Pay $200 cash for office supplies. Daily cash sales from January 21 to January 31 total $23,700. Make one journal entry for these sales. Pay sales salaries $4,900 and office salaries $3,800. 18 20 21 21 22 22 23 517. 25 27 27 28 31 31 Your answer is partially correct. Try again. 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 $1,000. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1,800. 4. Interest of $50 has accrued on the note payable. dem. Depreciation-Equipment PHAROAH COMPANY Trial Balance Adjustments Trial Balance Statcome Balance Sheet Account Titles Dr. Cr. Accounts Receivable Notes Receivable anventory Prepaid Insurance Fuent Equipment Notes Payable reyer Interest Payable ODE wner's Capital whers Drawings tcddddd Clicciitito U dddddddd juda cucilttilfiti Wilfrittat Lagud Lidicti ccccccdidcrini TUUUUUUUUN Did 51