Byron Company uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30 and records these sales following the new revenue recognition principle. The transactions completed for Byron Company during May 2019 were as follows:

CRJ-May 1 Received $50,000 in exchange for common stock issued to stockholders.

PJ-May 1 Purchased merchandise inventory on credit terms of 2/15, n/60 from Rudasill Co. $6,400.

SJ-May 3 Issued invoice #1001 for sale on account to Hockaday, Inc. $5,400. Byron Companys cost of this merchandise inventory was $2,980.

CRJ-May 3 Collected interest revenue of $4,900.

SJ-May 4 Issued invoice #1002 for sale on account to Oreo Co. $4,400. Byron Companys cost of this merchandise inventory was $3,300.

CPJ-May 8 Issued check #900 to purchase equipment for cash, $5,800.

CRJ-May 9 Sold merchandise inventory for cash, $3,300, (cost, $2,500).

CRJ-May 10 Received cash from Hockaday, Inc. in full settlement of the account receivable from the sale on May 3. Hockaday earned a discount by paying early.

CPJ-May 11 Purchased merchandise inventory for cash, $6,500, issuing check #901.

PJ-May 11 Purchased office supplies on account from Bordan, Inc. $1,900. Terms were n/EOM.

CPJ-May 13 Issued check #902 to pay Rudasill Co. the net amount owed from May 1. Round to the nearest dollar.

SJ-May 14 Issued invoice #1003 for credit sale to Hockaday, Inc. $1,357 (cost $1,127).

SJ-May 16 Sold merchandise inventory on account to Marion, Inc., issuing invoice #1004 for $1,665 (cost $1,240)

CRJ-May 17 Received cash from Oreo, Co. in full settlement of its account receivable from May 4.

PJ-May 17 Purchased merchandise inventory on credit terms of net 30 from Rudasill Co. $5,500.

CPJ-May 19 Issued check #903 to pay for insurance coverage, debiting prepaid insurance for $3,000.

PJ-May 20 Purchased equipment on credit terms of 3/10, n/60 from Highland Co., $2,430.

GJ-May 22 Returned damaged merchandise inventory to Rudasill Co. issuing a debit memo for $1,500.

PJ-May 22 Purchased merchandise inventory on credit terms of 2/10, n/30 from Rudasill Co. $1,675.

CPJ-May 25 Issued check #904 to pay utilities $1,453.

CPJ-May 27 Issued check #905 to pay Rudasill, Co in full on account from May 17 purchase, less return.

CPJ-May 30 Issued check #906 to pay monthly salaries of $5,200.

CRJ-May 30 Received cash in full from Hockaday, Inc. on credit sale of May 14.

CPJ-May 30 Issued check #907 to pay Bordan, Inc. in full on account from May 11 purchase.

Instructions:

1. Enter the following account balances in the general ledger as of May 1:

11D Cash $13,450 41C Sales Revenue $7,000

12D Accounts Receivable 3,250 42C Interest Revenue 2,200

14D Merchandise Inventory 7,500 51D Cost of Goods Sold 4,600

16D Office Supplies 1,450 52C Salaries Exp. 4,500

17C? Prepaid Insurance 0 53C Utilities Exp. 1,250

18D Equipment 2,000 60D? Sales Disc. Forfeited 0

21C Accounts Payable 1,600

31C Common Stock 11,000

32C Retained Earnings 16,200

2. Journalize the transactions for May 2019, using the following special journals: sales journal (page 10), cash receipts journal (page 8), purchases journal (page 13), cash disbursements journal (page 12) and general journal (page 9).
3. Open customer/vendor accounts in the subsidiary ledgers with beginning balances as of May 1 as follows: Accounts Receivable-Adam Co. $3,250; Oreo Co. $ 0; Marion, Inc. $ 0; Hockaday, Inc. $ 0. CUSTOMER Accounts Payable-Highland Co. $0; Bordan, Inc. $ 0; Rudasill Co. $ 0; and Zebra Co, $1,600. VENDOR
4. Post daily to the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger.
5. Total each of the columns of the special journals and post the appropriate totals to the general ledger.
6. Prepare a trial balance.

Verify the agreement of each subsidiary ledger with its controlling account.