Colorado 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 Colorado Co. are indicated in the working papers. Below are a series of transactions for the company for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 62% of the sales price.

Jan.3?	Sell merchandise on account to B. Richey $2,900, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.
5	Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.
7	Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.
8	Pay freight on merchandise purchased $235.
9	Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.
9	Issue credit of $300 to J. Forbes for merchandise returned.
10	Summary daily cash sales total $15,500.
11	Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.
12	Pay rent of $1,000 for January.
13	Receive payment in full from B. Richey and J. Forbes less cash discounts.
15	Withdrawal of $800 cash by J. Colorado for her personal use.
15	Post all entries to the subsidiary ledgers.
16	Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.
17	Pay $600 cash for office supplies.
18	Return $200 of merchandise to S. Hoyt and receive credit.
20	Summary daily cash sales total $20,100.
21	Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.
21	Receive payment in full from S. LaDew less cash discount.
22	Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $2,800, invoice no. 515.
22	Post all entries to the subsidiary ledgers.
23	Send checks to D. Omara and S. Hoyt in full payment less cash discounts.
25	Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.
27	Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.
27	Post all entries to the subsidiary ledgers.
28	Pay $200 cash for office supplies.
31	Summary daily cash sales total $21,300.
31	Pay total salaries of $8,100. (continued)

Instructions

Prepare the owner equity statement and the balance sheet

(c)

Prepare a trial balance at January 31, 2018, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.

1.	Office supplies at January 31 total $750.
2.	Insurance coverage expires on October 31, 2018.
3.	Annual depreciation on the equipment is $1,500.
4.	Interest of $50 has accrued on the note payable.