Please complete the parts from set (c) that are incorrect (the ones marked red).
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Accounting Cycle Review 7-01 a1-f2 (Part Level Submission) the Blossom Co. uses a perpetual inventory system and both working papers. Presented below are a series of transactions for Blossom 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. n accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Blossom are indicated GENERAL LEDGER January 1 Opening Balance Account Number Account Title 101 Cash $32,000 Accounts Receivable 112 11,200 Notes Receivable 115 36,000 Inventory 15 Prepaid Insurance 130 1.500 157 Equipment 6,000 158 Accumulated Depreciation-Equip. 1,400 Accounts Payable 201 26,000 Owner's Capital 75,300 301 (from nts receivable able Iger) January 1 Opening Balance Customer Beltre $1,200 Santos 7,000 Mahay 3,000 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Opening Balance Customer S. Meek $7,000 R. Moses 12,000 D. Saito 7,000 Sell merchandise on account to B. Corpas $3,000, invoice no. 510, and to J. Revere $1,500, invoice no. 511 Purchase merchandise from S. Gamel $5,000 and D. Posey $2,000, terms n/30. Jan. Receive checks from S. Mahay $3,000 and B. Santos $2,000 after discount period has lapsed. 7 8 Pay freight on merchandise purchased $220. Send checks to S. Meek for $7,000 less 2% cash discount, and to D. Saito for $7,000 less 1% cash discount Issue credit of $300 to J. Revere for merchandise returned. 10 Daily cash sales from January 1 to January 10 total $14,000. Make one journal entry for these sales. Sell merchandise on account to R. Beltre $1,200, invoice no. 512, and to S. Mahay $900, invoice no. 513 11 12 Pay rent of $1,000 for January. Receive payment in full from B. Corpas and J. Revere less cash discounts. 13 15 Withdraw $800 cash by M. Blossom for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; S. Meek $14,000, terms 2/10, n/30; and S. Gamel $1,000, terms n/30. Pay $400 cash for office supplies. 17 18 Return $200 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $18,600. Make one journal entry for these sales. Issue $12,000 note, maturing in 90 days, to R. Moses in payment of balance due. 21 Receive payment in full from S. Mahay less cash discount 21 Sell merchandise on account to B. Corpas $2,500, invoice no. 514, and to R. Beltre $2,000, invoice no. 515. 22 23 Send checks to D. Saito and S. Meek in full payment less cash discounts. Sell merchandise on account to B. Santos $3,000, invoice no. 516, and to J. Revere $6,000, invoice no. 517 25 27 Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; D. Posey $3,200, terms n/30; and S. Gamel $5,000, terms n/30. Post all entries to the subsidiary ledgers 27 28 Pay $200 cash for office supplies. 31 Daily cash sales from January 21 to January 31 total $21,000. Make one journal entry for these sales. 31 Pay sales salaries $4,000 and office salaries $3,000. (a1) Your answer is correct. Record the January transactions in sales journal. (Post entries in the order presented in the problem statement.) Sales Journal S1 Account Receivable Dr. Cost of Good Sold Dr. Date Account Debited Ref. Invoice No. Sales Revenue Cr. Inventory Cr. B. Corpas Jan. 3 510 3,000 1800 V Jan. 3 J. Revere 511 1,500 900 R. Beltre Jan. 11 512 1,200 720 Jan. 11 S.Mahay 513 900 540 V Jan. 22 B. Corpas 514 2,500 1,500 V Jan. 22 R. Beltre 515 2,000 1,200 B. Santos Jan. 25 516 3,000 1,800 V Jan. 25 J. Revere 517 3600 6,000 20,100 12,060 (a2) Your answer is correct. Record the January transactions in a single-column purchases journal. (Post entries in the order presented in the problem statement.) Purchases Journal P1 Inventory Dr. Accounts Payable Cr. Date Account Credited Terms Ref. V n/30 Jan. 5 S. Gamel 5,000 D. Posey n/30 V Jan. 5 2,000 V 1/10, n/30 D. Saito Jan. 16 14,000 S. Meek Jan. 16 2/10, n/30 V 14,000 S. Gamel V n/30 Jan. 16 1,000 Jan. 27 D. Saito 1/10, n/30 V 14,000 V D. Posey n/30 Jan. 27 3,200 Jan. 27 S. Gamel n/30 5,000 58,200 (a3) Your answer is correct. Record the January transactions in cash receipts journal. (Post entries in the order presented in the problem statement.) Cash Receipts Journal CR1 Sales Sales Other Cost of Good Sold Dr. Inventory Cr. Date Cash Discounts Revenue Accounts Account Credited Ref. Dr. Dr. Account Receivable Cr. Cr. Cr. S.Mahay Jan. 7 3,000 3000 B. Santos Jan. 7 2000 2,000 Jan. 10 14,000 14000 8400 Jan. 13 B. Corpas V 2940 60 3000 J. Revere V Jan. 13 1176 24 1200 Jan. 20 18,600 18600 11160 S. Mahay Jan. 21 882 18 900 12600 Jan. 31 21,000 21000 32160 10100 63598 102 53600 Record the January transactions in cash payments journal. (Post entries in the order presented in the problem statement.) Cash Payments Journal CP1 Accounts Paya ble Inventory Other Accounts Supplies Dr. Cash Date Account Debited Ref. Dr. Dr. Cr. Cr. Jan. 8 120 Inventory 220 220 Jan. 9 S. Meek 6860 7,000 140 Jan, 9 D. Saito 7,000 70 6930 729 Rent Expense Jan. 12 1,000 1,000 Owner's Drawings 306 Jan. 15 800 800 Jan. 17 400 400 D. Saito 14,000 Jan. 23 13860 140 Jan. 23 S. Meek 13800 276 13524 Jan. 28 200 200 627 7000 Jan. 31 Salaries and Wages Expense 7000 9020 41800 600 626 50794 (a5) Your answer is correct. Record the January transactions -column q entries in the order presented in the problem al journal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal Date Account Titles and Explanation Debit Credit Jan. 9 Sales Returns and Allowances 300 Accounts Receivable 300 (Issued credit for merchandise returned.) Jan. 9 Inventory 180 180 Cost of Goods Sold (Cost of merchandise returned.) Jan. 18 Accounts Payable 200 200 Inventory (Received credit for returned goods.) Jan. 21 Accounts Payable 12000 Notes Payable 12000 (Payment balance due.) (b) Your answer is correct Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash No.101 Ref. Date Explanation Debit Credit Balance Jan. 1 Balance 32,000 31 CR1 63598 95598 CP1 31 50794 44804 Accounts Receivable No. 112 Balance Ref. Debit Credit Date Explanation Jan. 1 Balance 11200 31 S1 20,100 31300 31 CR1 10100 21200 G1 300 20900 Notes Receivable No. 115 Balance Explanation Ref. Debit Credit Date Jan. 1 Balance 36,000 Inventory No.120 Balance Explanation Ref. Debit Credit Date Jan. 1 Balance 15,000 31 P1 73200 58,200 31 S1 61140 12,060 31 CR1 32160 28980 8 CP1 29200 220 CP1 31 626 28574 9 G1 28754 180 18 G1 200 28554 Supplies No. 125 Explanation Ref. Debit Credit Balance Date Jan. 1 Balance V 1,000 CP1 31 1600 600 Prepaid Insurance No. 130 Ref. Debit Credit Balance Date Explanation V Jan. 1 Balance 1,500 Equipment No. 157 Explanation Ref. Debit Credit Balance Date V Jan. 1 Balance 6,000 Accumulated Depreciation-Equipment No. 158 Explanation Ref. Debit Credit Balance Date V Jan. 1 Balance 1400 Notes Payable No. 200 Explanation Ref. Debit Credit Balance Date Jan. 21 G1 12000 12000 Accounts Payable No. 201 Ref. Debit Credit Balance Date Explanation Jan. 1 Balance 26000 31 P1 58,200 84200 31 CP1 42400 41800 18 G1 200 42200 21 G1 12,000 30200 Owner's Capital No. 301 Explanation Ref. Debit Credit Balance Date Jan. 1 Balance 75,300 Owner's Drawings No.306 Explanation Ref. Debit Credit Balance Date Jan 15 CP1 800 800 Sales Revenue No, 401 Explanation Ref. Debit Credit Balance Date Jan. 31 S1 20,100 20,100 31 CR1 53600 73700 Sales Returns and Allowances No. 412 Explanation Ref. Debit Credit Balance Date Jan. 9 G1 300 300 Sales Discounts No. 414 Explanation Ref. Debit Credit Balance Date Jan. 31 CR1 102 102 Cost of Goods Sold No.505 Credit Balance Explanation Ref. Debit Date Jan. 31 S1 12,060 12,060 31 CR1 32160 44220 9 G1 180 44040 Salaries and Wages Expense No.627 Ref. Debit Credit Balance Date Explanation Jan. 31 CP1 7000 7000 Rent Expense No. 729 Ref. Debit Balance Date Explanation Credit Jan. 12 CP1 1000 1000 Accounts Receivable Subsidiary Ledger R. Beltre Explanation Ref. Debit Credit Balance Date Jan. 1 Balance 1,200 11 S1 1,200 2400 22 S1 2000 4400 J. Revere Ref. Debit Credit Balance Date Explanation S1 Jan. 3 1,500 1,500 9 G1 300 1200 13 CR1 1200 25 S1 6000 6000 B.Santos Explanation Ref. Debit Credit Balance Date Jan. 1 Balance 7,000 CR1 7 2,000 5,000 25 S1 3000 8,000 S.Mahey Explanation Ref. Debit Credit Date Balance Jan. 1 Balance 3000 7 CR1 3000 11 S1 900 900 CR1 21 900 B. Corpas Ref. Debit Credit Date Explanation Balance Jan. 3 S1 3000 3000 13 CR1 3000 22 S1 2500 2500 Accounts Payable Subsidiary Ledger D.Posey Ref. Debit Credit Balance Date Explanation P1 Jan. 5 2000 2000 27 P1 3200 5200 S.Meek Ref. Debit Credit Balance Date Explanation Jan. 1 Balance 7,000 CP1 7,000 16 P1 14000 14000 18 G1 200 13800 23 CP1 13800 R. Moses Ref. Debit Credit Balance Date Explanation Jan. 1 Balance 12000 21 G1 12000 D.Saito Explanation Ref. Debit Credit Date Balance V Jan. 1 Balance 7000 9 CP1 7000 16 P1 14000 14000 23 CP1 14000 27 P1 14000 14000 S. Gamel Explanation Ref. Debit Balance Date Credit Jan. 5 P1 5000 5000 16 P1 1000 6000 27 P1 5000 11000 P (c) Your answer partlally correct. Try again. January 31, 2020, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information. Prepare a trial balance Office supplies at January 31 total $800. 1. Insurance coverage expires on October 31, 2020. Annual depreciation on the equipment is $1,200. 2. 3. Interest of $50 has accrued on the note payable. 4. BLOSSOM COMPANY Worksheet For the Month Ended January 31, 2020 Adjusted Trial Balance Trial Balance Adjustments Balance Sheet Statement Account Titles Cr. Cr Cr. Cr. Cr Dr. Dr. Dr. Dr. Dr Cash 44804 44804 44804 Accounts Receivable 20900 20900 20900 Notes Receivable 36000 36000 36000 Inventory 28554 28554 28554 Supplies 1600 Prepaid Insurance 1500 Equipment 6000 6000 6000 Accum. Depreciation-Equipment 1400 Notes Payable 12000 12000 12000 Accounts Payable 30200 30200 30200 Interest Payable Owner's Capital 75,300 75,300 75,300 Owner's Drawings 800 800 800 Sales Revenue 73700 73700 73700 Sales Returns and Allowances 300 300 300 Sales Discounts 102 102 102 Cost of Goods Sold 44040 44040 44040 Salaries and Wages Expense 7000 7000 7000 Rent Expense 1000 1000 1000 Totals 118900 118900 Supplies Expense Insurance Expense Depreciation Expense Interest Expense Totals Net Income Totals
