Ready Supply Corporation is a major merchandiser of student supplies located near the University of North Florida. The company carries a wide selection of items to encourage students to shop. Charge accounts are available to students, as well as the company offers cash discounts of 2/10, n/30 to courage prompt payment. Ready Supply Corporation uses the asset approach to record all prepayments, and liability approach to record cash received in advance from customers. Additionally, all sales are marked up 50% of cost. Finally, Ready uses the perpetual method to account for its inventory. The company reported the following beginning balances:

Inventory on hand on December 31, 2003 $3,000

Cash 10,000

Supplies 200

Equipment 15,000

Accumulated Depreciation 3,000

Retained Earnings 5,200

Capital Stock (1,000 shares issued) 20,000

Following are the transactions for the month of January 2004.

Purchased posters from Poster Supply at an invoice price of $10,600 terms were 1/10, n/30, F.O.B. shipping point.

Ready Supply paid the freight of $450.

Purchased $900 of supplies (all selling).

Borrowed $15,000 from the bank at 6% interest on January 1, 2004.

Paid January rent for the building in the amount of $500 (all administrative).

Purchased poster frames from Plastic Products at an invoice price of $5,000, terms 2/10, n/30, F.O.B. destination

Paid $1,600 for six months advertising in the university paper.

Some of the posters from Poster Supply were poorly printed. They were returned for a credit of $400.

Paid the amount owed to Poster Supply (Note: this is within the discount period).

Sold posters costing $5,600 for cash.

Paid $600 in wages to sales clerks and $300 to a part-time office clerk for the month.

Poster sales on account for the first half of the month totaled $4,700 at cost.

Posters that were sold on account costing $200 were returned due to defects.

Received one half of the accounts receivable within the discount period.

Paid a delivery company $150 for deliver of posters during the month to customers.

Received and paid the utility bill for the month $750 (all administrative).

Received the remaining accounts receivable after the discount period.

Cash sales for the second half of the month totaled $4,000 at cost.

Sales on account for the second half of the month totaled $1,000 at cost.

Received $2,250 from a university club for a special order of posters costing $1,500, which has not yet been delivered.

Required for adjustment:

One month of the prepaid advertising was used in January.

Supplies on hand totaled $300.

Salaries accrued (two days) at the end of the period: sales $175, office $120.

The equipment was purchased on January 1, 2003. Use straight- line method for depreciation (5 year life).

Rent was paid for January was used.

At January 31, only $600 of the Denver order was satisfied.

The bank pays interest of 5% on the ending cash balance. The interest earned is reflected on the bank statement the following month.

I just want to see if Im missing anything from the GL: thanks!!!

General Ledger
Account:	Cash 101			Account:	Accounts Receivable 111			Account:	Interest Rec. 112
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
Bal	10,000			11	7,050			Adj	1,650
2		450		12		300
3		900		13		3,375
4	15,000			17		3,375
5		500		19	1,500
7		1,600		Bal	1,500
9		10,098
10	8,400
11		900
13	3,307
15		150
16		750
17	3,375
18	6,000
20	2,250
	32,984
Account:	Inventory 113			Account:	Prepaid Advertising 114			Account:	Supplies 115
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
Bal	3,000			7	1,600			Bal	200
1	10,600			Adj		267		3	900
2	450			Bal	1,333				1,100
6	5,000							Adj		800
8		400						Bal	300
9		102
10		5,600
11		4,700
12	200
18		4,000
19		1,000
Bal	3,448
Adj	600
Adj		600
Bal	3,448
Account:	Prepaid Rent 117			Account:	Equipment 171			Account:	Acc. Depr. - Eq.172
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
	500			Bal	15,000			Bal		3,000
Adj		500						Adj		250
								Bal		3,250
Account:	Accounts Payable 201			Account:	Notes Payable 212			Account:	Capital Stock 301
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
1		10,600		4		15,000		Bal		20,000
6		5,000
8	400
9	10,200
Adj		600
Bal		5,600
Account:	Retained Earnings 312			Account:	Dividend 320			Account:	Sales Revenue 423
Date	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
Bal		5,200						10		8,400
		25,132						11		7,050
								18		6,000
	19,687							19		1,500
Bal		10,645								22,950
								Adj		900
								Bal		23,850
								Close
Account:	Sales Ret. & Allow. 424			Account:	Sales Discount 425			Account:	Adv Expense 616
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
12	300			13	68			Adj	267
Close				Close				Close
Account:	Utilities Expense 721			Account:	Office Wages Exp -723			Account:	Sales Wages Exp - 724
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
16	750			11	300			11	600
Close				Adj	120			Adj	175
				Bal	420			Bal	775
				Close				Close
Account:	Supplies Exp 728			Account:	Freight out Exp 725			Account:	Unearned Sales 211
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
Adj	800			15	150			20		2,250
Close				Close				Adj	900
								Bal		1,350
Account:	Cost of Goods Sold 615			Account:	Wages Payable 210			Account:	Depr. Expense 729
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
10	5,600			Adj		295		Adj	250
11	4,700							Close
12		200
18	4,000
19	1,000
	15,100
Adj	600
Bal	15,700
Close		15,700
Account:	Rent Expense 726			Account:	Interest Revenue 473			Account:	Interest Expense 727
Date 2004	Debit	Credit		Date 2004	Debit	Credit		Date 2004	Debit	Credit
Adj	500			Adj		1,650		Adj	75
				Close				Close
Account:	Interest Payable 213
Date 2004	Debit	Credit
Adj		75