Packard 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 Ledger
Account Number	Account Title	January 1 Opening Balance
101	Cash	$33,750
112	Accounts Receivable	13,000
115	Notes Receivable	39,000
120	Inventory	20,000
125	Supplies	1,000
130	Prepaid Insurance	2,000
157	Equipment	6,450
158	Accumulated DepreciationEquip.	1,500
201	Accounts Payable	35,000
301	Owner's Capital	78,700

Accounts Receivable Subsidiary Ledger		Accounts Payable Subsidiary Ledger
Customer	January 1 Opening Balance	Creditor	January 1 Opening Balance
R. Draves	$1,500	S. Kosko	$ 9,000
B. Hachinski	7,500	R. Mikush	15,000
S. Ingles	4,000	D. Moreno	11,000

Jan.3	Sell merchandise on account to B. Remy $3,100, invoice no. 510, and J. Fine $1,800, invoice no. 511.
5	Purchase merchandise on account from S. Yost $3,000 and D. Laux $2,700.
7	Receive checks for $4,000 from S. Ingles and $2,000 from B. Hachinski.
8	Pay freight on merchandise purchased $180.
9	Send checks to S. Kosko for $9,000 and D. Moreno for $11,000.
9	Issue credit of $300 to J. Fine for merchandise returned.
10	Summary cash sales total $15,500.
11	Sell merchandise on account to R. Draves for $1,900, invoice no. 512, and to S. Ingles $900, invoice no. 513. Post all entries to the subsidiary ledgers.
12	Pay rent of $1,000 for January.
13	Receive payment in full from B. Remy and J. Fine.
15	Withdraw $800 cash by I. Packard for personal use.
16	Purchase merchandise on account from D. Moreno for $15,000, from S. Kosko for $13,900, and from S. Yost for $1,500.
17	Pay $400 cash for supplies.
18	Return $200 of merchandise to S. Kosko and receive credit.
20	Summary cash sales total $17,500.
21	Issue $15,000 note to R. Mikush in payment of balance due.
21	Receive payment in full from S. Ingles. Post all entries to the subsidiary ledgers.
22	Sell merchandise on account to B. Remy for $3,700, invoice no. 514, and to R. Draves for $800, invoice no. 515.
23	Send checks to D. Moreno and S. Kosko in full payment.
25	Sell merchandise on account to B. Hachinski for $3,500, invoice no. 516, and to J. Fine for $6,100, invoice no. 517.
27	Purchase merchandise on account from D. Moreno for $12,500, from D. Laux for $1,200, and from S. Yost for $2,800.
28	Pay $200 cash for office supplies.
31	Summary cash sales total $22,920.
31	Pay 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)

Prepare a trial balance at January 31, 2012, 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, 2012.
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.

(c) Trial balance totals $196,620

Adj. T/B totals $196,975

1. Assume that the business uses a perpetual inventory system instead of a periodic one. Compute the Cost of Goods Sold for each sale in the Sales Journal at 70% of the sales price.The Trial Balance total is: $196,620

Record and Post the January transactions in the appropriate journal noted. Foot and cross-foot all special journals. (Record entries in the order displayed in the problem statement.)

PLEASE RECORD THE SALES JOURNAL, PURCHASES JOURNAL, GENERAL JOURNAL, CASH RECEIPTS JOURNAL, CASH PAYMENTS JOURNAL