CP7-1 Jeter 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 Jeter are indicated in the working papers. Presented on the next page are a series of transactions for Jeter 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. See https://imgur.com/a/1XY0n for full problem. problem is CP7-1 in accounting principles 12th edition.

General Ledger

Account number	Account title	January 1 opening balance
101	Cash	$35,750
112	Accounts recievable	13000
115	Notes Recievable	39000
120	Inventory	18000
126	Supplies	1000
130	Prepaid insurance	2000
157	Equipment	6450
158	Accumulated depreciation equipment	1500
201	Accounts payable	35000
301	Owner's capital	78700

Schedule of accounts receivable

Customer	January 1 opening balance
R. Beltre	$1500
B. Santos	7500
S. Mahay	4000

Schedule of accounts payable

Customer	January 1 opening balance
S. Meek.	$9000
R. Moses.	15000
D. Saito	11000

Jan. 3 Sell mercandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,800, invoice no. 511.

Jan. 5 Purchase merchandise from S. Gamel $5,000 and D. Posey $2,200, terms n/30.

Jan. 7 Receive checks from S. Mahay $4,000 and B. Santos $2,000 after discount period has lasped.

Jan. 8 Pay freight on merchandise purchased $235.

Jan. 9 Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $11,000 less 1% cash discount.

Jan. 9 Issue credit of $300 to J. Revere for merchandise returned.

Jan. 10 Summary daily cash sales total $15,500.

Jan. 11 Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay $900, invoice no. 513.

Jan. 12 Pay rent of $1,000 for January.

Jan. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts.

Jan. 15 Withdraw $800 cash by M. Jeter for personal use.

Jan. 16 Post all entries to the subsidiary ledgers.

Jan. 17 Pay $400 cash for office supplies.

Jan. 18 Return $200 of merchandise to S. Meek and receive credit.

Jan. 20 Summary daily cash sales total $20,100

Jan. 21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.

Jan. 21 Receive payment in full from S. Mahay less cash discount.

Jan. 22 Sell merchandise on account to B.Corpas $2,700, invoice no. 514, and to R. Beltre $2,300, invoice no. 515.

Jan. 22 Post all entries to the subsidiary ledgers.

Jan. 23 Send checks to D. Saito and S. Meek in full payment less cash discounts.

Jan. 25 Sell merchandise on account to B. Santos $3,500, invoice no. 516, and to J. Revere $6,100, invoice no. 517.

Jan. 27 Purchase merchandise from D. Saito $14,500, terms 1/10, n/30; D. Posey $3,200,terms n/30; and S. Gamel $5,400, terms n/30.

Jan. 27 Post all entries to the subsidaiary ledgers.

Jan. 28 Pay $200 cash for office supplies.

Jan. 31 Summary daily cash sales total $21,300

Jan. 31 Pay sales salaries $4,300 and office salaries $3,800.

Instructions

(a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payments journal, and a two-column general journal.

(b) Post the journals to the general ledger.

(c) Prepare a trial balance at January 31, 2014, in the trial balance columns of the worksheet.

Complete the worksheet usng the following additional information.

(1) Office supplies at January 31 total $900.

(2) Insurance coverage expires on October 31, 2014.

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

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

(d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January.

(e) Prepare and post adjusting and closing entries.

(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.