how do you workout this problem?ACR7.2Accounting 201

(Periodic Inventory)McBride Company has the following opening account balances in its general and subsidiary ledgers on January 1 and uses the periodic inventory system. All accounts have normal debit and credit balances.

GENERAL LEDGERAccount NumberAccount TitleJanuary 1 Opening Balance101Cash$33,750112Accounts Receivable13,000115Notes Receivable39,000120Inventory20,000126Supplies1,000130Prepaid Insurance2,000157Equipment6,450158Accumulated DepreciationEquip.1,500201Accounts Payable35,000301Owner's Capital78,700

Schedule of Accounts Receivable

(from accounts receivable subsidiary ledger)

Schedule of Accounts Payable

(from accounts payable subsidiary ledger)

CustomerJanuary 1 Opening BalanceCreditorJanuary 1 Opening BalanceR. Kotsay$1,500S. Otero$9,000B. Boxberger7,500R. Rasmus15,000S. Andrus4,000D. Baroni11,000

In addition, the following transactions have not been journalized for January 2020.

Jan.3Sell merchandise on account to B. Berg $3,600, invoice no. 510, and J. Lutz $1,800, invoice no. 511.5Purchase merchandise on account from S. Colt $5,000 and D. Kahn $2,700.7Receive checks for $4,000 from S. Andrus and $2,000 from B. Boxberger.8Pay freight on merchandise purchased $180.9Send checks to S. Otero for $9,000 and D. Baroni for $11,000.9Issue credit of $300 to J. Lutz for merchandise returned.10Cash sales from January 1 to January 10 total $15,500. Make one journal entry for these sales.11Sell merchandise on account to R. Kotsay for $2,900, invoice no. 512, and to S. Andrus $900, invoice no. 513.

Post all entries to the subsidiary ledgers.

12Pay rent of $1,000 for January.13Receive payment in full from B. Berg and J. Lutz.15Withdraw $800 cash by I. McBride for personal use.16Purchase merchandise on account from D. Baroni for $12,000, from S. Otero for $13,900, and from S. Colt for $1,500.17Pay $400 cash for supplies.18Return $200 of merchandise to S. Otero and receive credit.20Cash sales from January 11 to January 20 total $17,500. Make one journal entry for these sales.21Issue $15,000 note to R. Rasmus in payment of balance due.21Receive payment in full from S. Andrus.

Post all entries to the subsidiary ledgers.

22Sell merchandise on account to B. Berg for $3,700, invoice no. 514, and to R. Kotsay for $800, invoice no. 515.23Send checks to D. Baroni and S. Otero in full payment.25Sell merchandise on account to B. Boxberger for $3,500, invoice no. 516, and to J. Lutz for $6,100, invoice no. 517.27Purchase merchandise on account from D. Baroni for $12,500, from D. Kahn for $1,200, and from S. Colt for $2,800.28Pay $200 cash for office supplies.31Cash sales from January 21 to January 31 total $22,920. Make one journal entry for these sales.31Pay sales salaries of $4,300 and office salaries of $3,600.

Instructions

(a)

Record the January transactions in the appropriate journalsales, purchases, cash receipts, cash payments, and general.

(b)

Post the journals to the general and subsidiary ledgers. Add and number new accounts in an orderly fashion as needed.

(c)

trial balance at January 31, 2020, using a worksheet. Complete the worksheet using the following additional information.

• 1.Supplies at January 31 total $700.
• 2.Insurance coverage expires on October 31, 2020.
• 3.Annual depreciation on the equipment is $1,500.
• 4.Interest of $30 has accrued on the note payable.
• 5.Inventory at January 31 is $15,000.

(d)

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

(e)

post the adjusting and closing entries.

(f)

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

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