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Blossom Co. uses a perpetual inventory system and both an accounts recieveable and an accounts payable subsidiary ledger. Balances related to botht he general ledger
Blossom Co. uses a perpetual inventory system and both an accounts recieveable and an accounts payable subsidiary ledger. Balances related to botht he general ledger and the subsidiary ledgers for Blossom are indicated in the working papers presented below. Also following are a seriesa of transactions fo Blossom 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.
Jan. 3 Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,600, invoice no. 511. 5 Purchase merchandise from 5. Gamel $6,000 and D. Posey $2,600, terms n/30. 7 Receive checks from 5. Mahay $3,800 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 $8,000 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 $16,500. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre $1,400, invoice no. 512, and to S. Mahay $900, invoice no. 513. 12 Pay rent of $1,600 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Blossom for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $14,000, terms 1/10,n/30;5. Meek $14,000, terms 2/10,n/30; and S. Gamel $1,100, terms n/30. 17 Pay $700 cash for office supplies. 18 Return $400 of merchandise to 5 . Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $21,100. 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 $2,000, invoice no. 515 . \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ GENERAL LEDGER } \\ \hline AccountNumber & \multicolumn{2}{|c|}{ Account Title } & January1OpeningBalance \\ \hline 101 & \multicolumn{2}{|c|}{ Cash } & $34,000 \\ \hline 112 & \multicolumn{2}{|c|}{ Accounts Receivable } & 12,900 \\ \hline 115 & \multicolumn{2}{|c|}{ Notes Receivable } & 42,000 \\ \hline 120 & \multicolumn{2}{|c|}{ Inventory } & 15,000 \\ \hline 126 & \multicolumn{2}{|c|}{ Supplies } & 1,200 \\ \hline 130 & \multicolumn{2}{|c|}{ Prepaid Insurance } & 1,500 \\ \hline 157 & \multicolumn{2}{|c|}{ Equipment } & 8,250 \\ \hline 158 & \multicolumn{2}{|c|}{ Accumulated Depreciation-Equip. } & 1,600 \\ \hline 201 & \multicolumn{2}{|c|}{ Accounts Payable } & 33,000 \\ \hline 301 & \multicolumn{2}{|c|}{ Owner's Capital } & 80,250 \\ \hline \multicolumn{4}{|c|}{ScheduleofAccountsReceivable(fromaccountsreceivablesubsidiaryledger)} \\ \hline Custon & \multicolumn{2}{|c|}{January1OpeningBalance} & \\ \hline R. Beltre & & $1,700 & \\ \hline B. Santos & & 7,400 & \\ \hline S. Mahay & & 3,800 & \\ \hline \end{tabular} Owner's Capital Owner's Drawings Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Salaries and Wages Expense Rent Expense Totals Interest Payable Supplies Expense Insurance Expense Depreciation Expense Interest Expense Totals Net Income Net Income Totals Prepare a trial balance at January 31,2022 , in the trial balance columns of the worksheet. Complete the worksheet using the following additional information. 1. Office supplies at January 31 total $800. 2. Insurance coverage expires on October 31, 2022. 3. Annual depreciation on the equipment is $1,800. 4. Interest of $50 has accrued on the note payable. 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,800, invoice no. 516, and to J. Revere $6,800, invoice no. 517. 27 Purchase merchandise from D. Saito $15,000, terms 1/10,n/30;D. Posey $3,400, terms n/30; and S. Gamel $5,800, 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 $22,200. Make one journal entry for these sales. 31 Pay sales salaries $5,000 and office salaries $3,400. Jan. 3 Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,600, invoice no. 511. 5 Purchase merchandise from 5. Gamel $6,000 and D. Posey $2,600, terms n/30. 7 Receive checks from 5. Mahay $3,800 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 $8,000 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 $16,500. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre $1,400, invoice no. 512, and to S. Mahay $900, invoice no. 513. 12 Pay rent of $1,600 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Blossom for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $14,000, terms 1/10,n/30;5. Meek $14,000, terms 2/10,n/30; and S. Gamel $1,100, terms n/30. 17 Pay $700 cash for office supplies. 18 Return $400 of merchandise to 5 . Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $21,100. 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 $2,000, invoice no. 515 . \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ GENERAL LEDGER } \\ \hline AccountNumber & \multicolumn{2}{|c|}{ Account Title } & January1OpeningBalance \\ \hline 101 & \multicolumn{2}{|c|}{ Cash } & $34,000 \\ \hline 112 & \multicolumn{2}{|c|}{ Accounts Receivable } & 12,900 \\ \hline 115 & \multicolumn{2}{|c|}{ Notes Receivable } & 42,000 \\ \hline 120 & \multicolumn{2}{|c|}{ Inventory } & 15,000 \\ \hline 126 & \multicolumn{2}{|c|}{ Supplies } & 1,200 \\ \hline 130 & \multicolumn{2}{|c|}{ Prepaid Insurance } & 1,500 \\ \hline 157 & \multicolumn{2}{|c|}{ Equipment } & 8,250 \\ \hline 158 & \multicolumn{2}{|c|}{ Accumulated Depreciation-Equip. } & 1,600 \\ \hline 201 & \multicolumn{2}{|c|}{ Accounts Payable } & 33,000 \\ \hline 301 & \multicolumn{2}{|c|}{ Owner's Capital } & 80,250 \\ \hline \multicolumn{4}{|c|}{ScheduleofAccountsReceivable(fromaccountsreceivablesubsidiaryledger)} \\ \hline Custon & \multicolumn{2}{|c|}{January1OpeningBalance} & \\ \hline R. Beltre & & $1,700 & \\ \hline B. Santos & & 7,400 & \\ \hline S. Mahay & & 3,800 & \\ \hline \end{tabular} Owner's Capital Owner's Drawings Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Salaries and Wages Expense Rent Expense Totals Interest Payable Supplies Expense Insurance Expense Depreciation Expense Interest Expense Totals Net Income Net Income Totals Prepare a trial balance at January 31,2022 , in the trial balance columns of the worksheet. Complete the worksheet using the following additional information. 1. Office supplies at January 31 total $800. 2. Insurance coverage expires on October 31, 2022. 3. Annual depreciation on the equipment is $1,800. 4. Interest of $50 has accrued on the note payable. 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,800, invoice no. 516, and to J. Revere $6,800, invoice no. 517. 27 Purchase merchandise from D. Saito $15,000, terms 1/10,n/30;D. Posey $3,400, terms n/30; and S. Gamel $5,800, 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 $22,200. Make one journal entry for these sales. 31 Pay sales salaries $5,000 and office salaries $3,400
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