Review the opening account balances in Winters Company's general and subsidiary ledgers on January 1, 2021. All accounts have normal debit and credit balances. Winters uses a perpetual inventory system. If not specified in the transaction, the cost of all merchandise sold was 40% of the sales price. General Ledger Account No. Account Title January 1, 2021 Opening Balance 101 Cash $ 35,050 112 Accounts receivable 14,000 115 Notes receivable 39,000 120 Merchandise inventory 20,000 125 Supplies 1,000 130 Prepaid insurance 2,000 140 Land 50,000 145 Building 100,000 146 Accumulated depreciationbuilding 25,000 157 Equipment 6,450 158 Accumulated depreciationequipment 1,500 201 Accounts payable 36,000 275 Mortgage payable 125,000 301 A. Winters, capital 80,000 Accounts Receivable Subsidiary Ledger Customer January 1, 2021 Opening Balance N. Martin $1,500 C. Wilson 7,500 D. Cook 5,000 Accounts Payable Subsidiary Ledger Creditor January 1, 2021 Opening Balance Lanai Co. $10,000 Mikush Bros. 15,000 Sauve & Son 11,000 Winters' January transactions follow: Jan. 3 Sold merchandise on credit to F. Frank $3,000, invoice no. 510, and J. Jeff $1,800, invoice no. 511. 5 Purchased merchandise on account from Walter White for $3,000 and Gustavo Fring for $2,750. 7 Received cheques for $5,000 from D. Cook and $2,000 from C. Wilson on accounts. 8 Paid freight on merchandise purchased, $185. 9 Sent cheques to Lanai Co. for $10,000 and Sauve & Son for $11,000 in full payment of accounts. 9 Issued credit memo for $400 to J. Jeff for merchandise returned. The merchandise was restored to inventory. 10 Summary cash sales totalled $17,250 with cost of goods at $6,600. 11 Sold merchandise on credit to N. Martin for $1,850, invoice no. 512, and to D. Cook for $950, invoice no. 513. 15 Withdrew $2,000 cash for Winters's personal use. 16 Purchased merchandise on account from Sauve & Son for $15,000, from Lanai Co. for $13,950, and from Walter White for $1,500. 17 Purchased supplies on account from Gustavo Fring, $400. 18 Returned $500 of merchandise to Lanai and received credit. 20 Summary cash sales totalled $16,725 with cost of goods at $7,000. 21 Issued $15,000 note to Mikush Bros. in payment of balance due. The note bears an interest rate of 10% and is due in three months. 21 Received payment in full from D. Cook. 22 Sold merchandise on credit to F. Frank for $1,600 (cost of goods is $680), invoice no. 514, and to N. Martin for $800, invoice no. 515. 23 Sent cheques to Sauve & Son and Lanai Co. in full payment of accounts. 25 Sold merchandise on credit to C. Wilson for $3,600, invoice no. 516, and to J. Jeff for $6,150, invoice no. 517. 27 Purchased merchandise on account from Sauve & Son for $14,250, from Gustavo Fring for $1,200, and from Walter White for $2,850. 28 Purchased supplies on account from Gustavo Fring, $800. 31 Summary cash sales totalled $19,950 with cost of goods at $7,968. 31 Paid salaries of $6,900. 31 Received payment in full from F. Frank and J. Jeff on account. In addition to the accounts identified in the trial balance, the chart of accounts shows the following: No. 200 Notes Payable, No. 230 Interest Payable, No. 300 Income Summary, No. 310 A. Winters, Drawings, No. 401 Sales, No. 410 Sales Returns and Allowances, No. 505 Cost of Goods Sold, No. 711 Depreciation Expense, No. 718 Interest Expense, No. 722 Insurance Expense, No. 725 Salaries Expense, and No. 728 Supplies Expense. Instructions 1. Record the January transactions in the appropriate journalsales, purchases, cash receipts, cash payments, and general. 2. Enter the opening balances in general and subsidiary ledger accounts. Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed. 3. Prepare an unadjusted trial balance at January 31, 2021. Determine whether the subsidiary ledgers agree with the control accounts in the general ledger. 4. Prepare and post adjusting journal entries. Prepare an adjusted trial balance, using the following information: 1. Supplies at January 31 total $700. 2. Insurance coverage expires on September 30, 2021. 3. Annual depreciation on the building is $6,000 and on the equipment is $1,500. 4. Interest of $45 has accrued on the note payable. 5. A physical count of merchandise inventory has found $44,735 of goods on hand. 5. Prepare a multiple-step income statement and a statement of owner's equity for January, and a classified balance sheet at the end of January. 6. Prepare and post the closing entries. 7. Prepare a post-closing trial balance.