Problem 7-5A Selected accounts from the chart of accounts of Fornelli Co. are shown below. 101 Cash 306 Owner's Drawings 112 Accounts Receivable 401 Sales Revenue 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 131 Prepaid Rent 631 Supplies Expense 201 Accounts Payable 729 Rent Expense 301 Owner's Capital Presented below are the purchases and cash payments journals for Fornelli Co. for its first month of operations. PURCHASES JOURNAL P1 Inventory Dr. Date Account Credited Ref. Accounts Payable Cr. July 4 N. Alvarado 6,900 5 F. Rees 7,100 11 J. Gallup 5,520 13 C. Werly 14,900 20 M. Mangus 8,280 42,700 Cr. CASH PAYMENTS JOURNAL CP1 Other Accounts Accounts Payable Inventory Cash Date Account Debited Ref. Dr. Dr. Cr. July 4 Supplies 610 610 10 F. Rees 7,100 71 7,029 11 Prepaid Rent 6,480 6,480 15 N. Alvarado 6,900 6,900 19 Owner's Drawings 2,510 2,510 21 C. Werly 14,900 149 14,751 9,600 28,900 220 38,280 In addition, the following transactions have not been journalized for July. The cost of all merchandise sold was 65% of the sales price. July 1 The founder, N. Fornelli, invests $89,200 in cash. 6 Sell merchandise on account to Dow Co. $6,000 terms 1/10, n/30. 7 Make cash sales totaling $7,800. 8 Sell merchandise on account to S. Goebel $3,800, terms 1/10, n/30. 10 Sell merchandise on account to W. Leiss $4,200, terms 1/10, n/30. 13 Receive payment in full from S. Goebel. 16 Receive payment in full from W. Leiss. 20 Receive payment in full from Dow Co. 21 Sell merchandise on account to H. Kenney $5,800, terms 1/10, n/30. 29 Returned damaged goods to N. Alvarado and received cash refund of $390. Journalize the transactions that have not been journalized in the sales journal and the cash receipts journal. (Record entries in the order displayed in the problem statement.) Sales Journal 51 Date Account Debited Accounts Receivable Dr. Ref. Sales Revenue Cr. Cost of Goods Sold Dr. Inventory Cr. (112)(401) (505)(120) Cash Receipts Journal CR1 Cost of Goods Sold Dr. Inventory Cr. Date Account Credited Ref. Cash Dr. Sales Discounts Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Accounts Cr. 301 Post to the accounts receivable and accounts payable subsidiary ledgers. (Post entries in the order of entries presented in the previous part.) Accounts Receivable Subsidiary Ledger Dow Co. Date Explanation Ref. Debit Credit Balance S1 CR1 H. Kenney Date Explanation Ref. Debit Credit Balance S1 W. Leiss Date Explanation Ref. Debit Credit Balance S1 CR1 S. Goebel Date Explanation Ref. Debit Credit Balance S1 Post the individual entries and totals to the general ledger. (Post entries in the order of entries presented in the previous part.) Cash No. 101 Date Explanation Ref. Debit Credit Balance July 31 CR1 July 31 CP1 Accounts Receivable Date Explanation Ref. July 31 S1 No. 112 Balance Debit Credit July 31 CR1 Inventory Date Explanation Ref. No. 102 Balance Debit Credit July 31 P1 July 29 CR1 July 31 CP1 July 31 S1 July 31 CR1 No. 127 Balance Debit Credit Supplies Date Explanation Ref. July 4 CP1 Prepaid Rent Date Explanation Ref. July 11 CP1 Accounts Payable Date Explanation Ref. No. 131 Balance Debit Credit No. 201 Balance Debit Credit July 31 P1 July 31 CP1 No. 301 Balance Debit Credit Owner's Capital Date Explanation Ref. July 1 CR1 Owner's Drawings Date Explanation Ref. July 19 CP1 No. 306 Balance Debit Credit No. 401 Sales Revenue Date Explanation Ref. Debit Credit Balance July 31 S1 Prepare a trial balance at July 31, 2017. FORNELLI CO. Trial Balance Debit Credit $