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(C) Prepare a trial balance at January 31, 2017, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.

(C) Prepare a trial balance at January 31, 2017, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.

Check figures:

Cash Receipts Journal, total Cash DR: $ 70,348

Cash Payments Journal, total Cash CR: 62,060

Net Income: 25,218 Total Assets: 149,568

Total Post Closing Trial Balance: 151,193

Sun & Surf Company 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 Sun & Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 55% of the sales price.

Jan.3 Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826.

5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30.

7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed.

8 Pay freight on merchandise purchased $235.

9 Send checks to K. Xerxes for $9,000 less 2% cash discount, and to T. Caper for $11,000 less 1% cash discount.

9 Issue credit of $300 to C. Ryder for merchandise returned.

10 Summary daily cash sales total $15,500.

11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Arnold $900, invoice no. 828.

12 Pay rent of $1,000 for January.

13 Receive payment in full from M. Knast and C. Ryder less cash discounts.

15 Withdrawal of $800 cash by J. Sandy for personal use.

15 Post all entries to the subsidiary ledgers.

16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30.

17 Pay $400 cash for office supplies.

18 Return $200 of merchandise to K. Xerxes and receive credit.

20 Summary daily cash sales total $20,100.

21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due.

21 Receive payment in full from V. Arnold less cash discount.

22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830.

22 Post all entries to the subsidiary ledgers.

23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts.

25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832.

27 Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30.

27 Post all entries to the subsidiary ledgers.

28 Pay $275 cash for office supplies.

31 Summary daily cash sales total $21,300.

31 Pay salaries and wages of $8,100. (continued)

(c) Prepare a trial balance at January 31, 2017, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.

1. Office supplies at January 31 total $900.

2. Insurance coverage expires on September 30, 2017.

3. Annual depreciation on the equipment is $1,500.

4. Interest of $50 has accrued on the note payable.

General Ledger

Cash

No. 101

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 37,150

Accounts Receivable

No. 112

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 13,000

Notes Receivable

No. 115

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 39,000

Inventory

No. 120

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 17,795

Office Supplies

No. 125

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 1,200

Prepaid Insurance

No. 130

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 2,205

Equipment

No. 157

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 6,450

Accumulated Depreciation - Equipment

No. 158

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 1,500

Notes Payable

No. 200

Date

Explanation

Ref.

Debit

Credit

Balance

Accounts Payable

No. 201

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 35,000

Interest Payable

Date

Explanation

Ref.

Debit

Credit

Balance

J. Sandy, Capital

No. 301

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 80,300

J. Sandy, Drawing

No. 306

Date

Explanation

Ref.

Debit

Credit

Balance

Income Summary

No. 350

Date

Explanation

Ref.

Debit

Credit

Balance

Sales

No. 401

Date

Explanation

Ref.

Debit

Credit

Balance

Sales Returns and Allowances

No. 412

Date

Explanation

Ref.

Debit

Credit

Balance

Sales Discounts

No. 414

Date

Explanation

Ref.

Debit

Credit

Balance

Cost of Goods Sold

No. 505

Date

Explanation

Ref.

Debit

Credit

Balance

Salaries and Wages Expense

No. 627

Date

Explanation

Ref.

Debit

Credit

Balance

Depreciation Expense

No. 711

Date

Explanation

Ref.

Debit

Credit

Balance

Interest Expense

No. 718

Date

Explanation

Ref.

Debit

Credit

Balance

Insurance Expense

No. 722

Date

Explanation

Ref.

Debit

Credit

Balance

Office Supplies Expense

No. 728

Date

Explanation

Ref.

Debit

Credit

Balance

Rent Expense

No. 729

Date

Explanation

Ref.

Debit

Credit

Balance

D. Gallagher

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 1,500

11-Jan

Sales

$ 1,600

$ 3,100

22-Jan

Sales

$ 1,300

$ 4,400

C. Ryder

Date

Explanation

Ref.

Debit

Credit

Balance

3-Jan

Sales

$ 1,900

$ 1,900

9-Jan

Return

$ 300

$ 1,600

13-Jan

Cash Receipt

$ 1,600

$ -

25-Jan

Sales

$ 6,100

$ 6,100

I. Tan

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 7,500

7-Jan

Cash Receipt

$ 2,000

$ 5,000

25-Jan

Sales

$ 3,500

V. Arnold

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 4,000

7-Jan

Cash Receipt

$ 4,000

$ -

11-Jan

Sales

$ 900

$ 900

21-Jan

Cash Receipt

$ 900

$ -

M. Knast

Date

Explanation

Ref.

Debit

Credit

Balance

3-Jan

Sales

$ 5,100

$ 5,100

13-Jan

Cash Receipt

$ 5,100

$ -

22-Jan

Sales

$ 2,700

$ 2,700

N. Sova

Date

Explanation

Ref.

Debit

Credit

Balance

7-Jan

Purchase

$ 2,200

$ 2,200

27-Jan

Purchase

$ 1,200

$ 3,400

K. Xerxes

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 9,000

9-Jan

Cash Payment

$ 9,000

$ -

16-Jan

Purchase

$ 14,200

$ 14,200

18-Jan

Return of Goods

$ 200

$ 14,000

28-Jan

Cash Payment

$ 14,000

$ -

M. Griffen

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 15,000

21-Jan

T. Caper

Date

Explanation

Ref.

Debit

Credit

Balance

Jan. 1

Balance

$ 11,000

9-Jan

Cash Payment

$ 11,000

$ -

16-Jan

Purchase

$ 18,000

$ 18,000

23-Jan

Cash Payment

$ 18,000

$ -

17-Jan

Purchase

$ 14,500

$ 14,500

R. Drifter

Date

Explanation

Ref.

Debit

Credit

Balance

7-Jan

Purchase

$ 5,000

$ 5,000

16-Jan

Purchase

$ 1,500

$ 6,500

27-Jan

Purchase

$ 5,400

$ 11,900

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