CP7-1 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receciv- able and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Jeter are indicated in the working papers presented below. Also following 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. GENERAL LEDGER January 1 Opening Balance $35,750 Account Number Account Title 101 Cash 112 115 Accounts Receivable Notes Receivable 13,000 39,000 18,000 1,000 Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable 120 126 130 2,000 6,450 157 158 201 1,500 35,000 301 Owner's Capital 78,700 Comprehensive Problems: Chapters 3 to 7 349 Schedule of Accounts Receivable Schedule of Accounts Payable (from accounts receivable subsidiary ledger) (from accounts payable subsidiary ledger) January 1 Opening Balance January 1 Opening Balance Creditor S. Meek Customer R. Beltre B. Santos S. Mahay $1,500 $ 9,000 15,000 11,000 7,500 R. Moses 4,000 D. Saito Jan. 3 Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,800, invoice no. 511. Purchase merchandise from S. Gamel $5,000 and D. Posey $2,200, terms n/30. Receive checks from s. Mahay $4,000 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $235. Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $11,000 less 1% cash discount. Issue credit of $300 to J. Revere for merchandise returned. 10 Daily cash sales from January I to January 10 total $15,500. Make one joumal entry for these sales. Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay $900, 5 6. 9 11 invoice no. 513. 12 Pay rent of $1,000 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Jeter for personal use. 15 Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; S. Meek $14,200, terms 16 2/10, n/30; and S. Gamel $1,500, terms n/30. 17 Pay $400 cash for office supplies. Return $200 of merchandise to S. Mcek and receive credit. 20 Daily cash sales from January 11 to January 20 total $20,100. Make one journal entry for these sales. 18 Issue $15,000 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 $2,300, 21 invoice no. 515. 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 $3,500, invoice no. 516, and to J. Revere $6,100, invoice no. 517. 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. 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 $21,300. Make one journal entry for these sales. 27 31 Pay sales salaries $4,300 and office salaries $3,800. in70 Instructions (a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal as shown in Illustration 7-9, a cash payments journal as shown in llustration 7-16, and a two-column general journal. (b) Post the journals to the general ledger. (e) Prepare a trial balance at January 31, 2017, in the trial balance columns of the worksheet. Com- plete the worksheet using the following additional information. (1) Office supplies at January 31 total $900. (2) Insurance coverage expires on October 31, 2017. (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. () Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.