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 Illustration 7.16, and a two-column general journal.

(b)

Post the journals to the general ledger.

(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 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.

(f)

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

Comprehensive Problem 7-1 (Part Level Submission) eter Co. uses a perpetual inventory system and both en accounts receivable and an accounts payable subsidiary ledger. Belances related to both the general ledger and the subsidiary ledger for Jeter are indicated in the working papers. Presented below are a series of transactions for Jeter Co. for the month of January. Credit sales terms ere 2/10, n/30. The cost of all merchandise $old was 60% of the sales price. General Ledger January 1 Number Account Title Opening Balance 38, S00 12,900 36,000 16,500 ,200 1,600 8,700 1,400 33,300 81,100 Cash 101 112 Accounts Recelvable 115 120 Inventory 126 Supples 130 Prepald Insurance 57 Equipment Notes Recelvable 201 301 Accounts Payable Owner's Capital (from accounts recelvable subsidiary ledger) January 1 Opening Balance Customer R. Beltre B. Santor S. Mahay $1,200 8,000 3,700 Schedule of Accounts Payable (from accounts payable subsidiary ledger) anuary 1 Opening Balance Customer $7,500 14,000 12,000 R. Moses D. Saito Comprehensive Problem 7-1 (Part Level Submission) eter Co. uses a perpetual inventory system and both en accounts receivable and an accounts payable subsidiary ledger. Belances related to both the general ledger and the subsidiary ledger for Jeter are indicated in the working papers. Presented below are a series of transactions for Jeter Co. for the month of January. Credit sales terms ere 2/10, n/30. The cost of all merchandise $old was 60% of the sales price. General Ledger January 1 Number Account Title Opening Balance 38, S00 12,900 36,000 16,500 ,200 1,600 8,700 1,400 33,300 81,100 Cash 101 112 Accounts Recelvable 115 120 Inventory 126 Supples 130 Prepald Insurance 57 Equipment Notes Recelvable 201 301 Accounts Payable Owner's Capital (from accounts recelvable subsidiary ledger) January 1 Opening Balance Customer R. Beltre B. Santor S. Mahay $1,200 8,000 3,700 Schedule of Accounts Payable (from accounts payable subsidiary ledger) anuary 1 Opening Balance Customer $7,500 14,000 12,000 R. Moses D. Saito