Sandhill Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sandhill are indicated in the working papers. presented below are a series of transactions for Sandhill 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

Accounting Cycle Review 7-01 a1-f2 (Comprehensive Problem)

GENERAL LEDGER Account Number Account Title 101 Cash 112 115 120 126 January 1 Opening Balance $37,250 13,700 41,000 15,500 1,100 2,100 6,450 1,600 27,000 88,500 Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital 130 157 158 201 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,300 B. Santos 7,800 S. Mahay 4,600 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $8,000 R. Moses 12,000 D. Saito 7,000 Jan. 3 5 7 8 9 9 10 11 12 13 15 15 16 17 Sell merchandise on account to B. Corpas $3,200, invoice no. 510, and to J. Revere $1,600, Invoice no. 511. Purchase merchandise from S. Gamel $5,000 and D. Posey $3,000, terms n/30. Recelve checks from S. Mahay $4,600 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $240. Send checks to S. Meek for $8,000 less 2% cash discount, and to D. Salto for $7,000 less 1% cash discount Issue credit of $300 to J. Revere for merchandise returned. Dally cash sales from January 1 to January 10 total $14,500. Make one journal entry for these sales Sell merchandise on account to R. Beltre $1,400, invoice no. 512, and to S. Mahay $900, invoice no. 513. Pay rent of $1,400 for January Receive payment in full from B. Corpas and J. Revere less cash discounts. Withdraw $800 cash by M. Sandhill for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Salto $16,000, terms 1/10, 1/30; S. Meek $14,800, terms 2/10,n/30; and S. Gamel $1,300, terms n/30. Pay $400 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Dally cash sales from January 11 to January 20 total $19,100. Make one journal entry for these sales. Issue $12,000 note, maturing in 90 days, to R. Moses In payment of balance due Receive payment in full from S. Mahay less cash discount Sell merchandise on account to B. Corpas $2,500, Involce no. 514, and to R. Beltre $2,300, Invoice no. 51s. Post all entries to the subsidiary ledgers. Send checks to D. Salto and S. Meek in full payment less cash discounts Sell merchandise on account to 8. Santos $3,100, invoice no. 516, and to J. Revere $6,000, Invoice no. 517. Purchase merchandise from D. Salto $14,900, terms 1/10, 1/30; D. Posay $3,300, terms 1/30; and S. Gamel $5,400, terms 1/30. Post all entries to the subsidiary ledgers. Pay $200 cash for office supplies. Dally cash sales from January 21 to January 31 total $24,600. Make one journal entry for these sales Pay sales salaries $4,700 and office salaries $3,600. 18 20 21 21 22 22 23 25 27 22 28 31 Instructions a. Record the January transactions in a sales journal, a single-column purchases journal, a cash re- ceipts journal as shown in Illustration 7.9. a cash payments journal as shown in Illustration 7.16, and a two-column general journal. b. Post the journals to the general ledger. c. Prepare a trial balance at January 31, 2020, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information. 1. Office supplies at January 31 total $900. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1.500. 4. Interest of $50 has accrued on the note payable. d. Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January. e. Prepare and post adjusting and closing entries. GENERAL LEDGER Account Number Account Title 101 Cash 112 115 120 126 January 1 Opening Balance $37,250 13,700 41,000 15,500 1,100 2,100 6,450 1,600 27,000 88,500 Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital 130 157 158 201 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,300 B. Santos 7,800 S. Mahay 4,600 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $8,000 R. Moses 12,000 D. Saito 7,000 Jan. 3 5 7 8 9 9 10 11 12 13 15 15 16 17 Sell merchandise on account to B. Corpas $3,200, invoice no. 510, and to J. Revere $1,600, Invoice no. 511. Purchase merchandise from S. Gamel $5,000 and D. Posey $3,000, terms n/30. Recelve checks from S. Mahay $4,600 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $240. Send checks to S. Meek for $8,000 less 2% cash discount, and to D. Salto for $7,000 less 1% cash discount Issue credit of $300 to J. Revere for merchandise returned. Dally cash sales from January 1 to January 10 total $14,500. Make one journal entry for these sales Sell merchandise on account to R. Beltre $1,400, invoice no. 512, and to S. Mahay $900, invoice no. 513. Pay rent of $1,400 for January Receive payment in full from B. Corpas and J. Revere less cash discounts. Withdraw $800 cash by M. Sandhill for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Salto $16,000, terms 1/10, 1/30; S. Meek $14,800, terms 2/10,n/30; and S. Gamel $1,300, terms n/30. Pay $400 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Dally cash sales from January 11 to January 20 total $19,100. Make one journal entry for these sales. Issue $12,000 note, maturing in 90 days, to R. Moses In payment of balance due Receive payment in full from S. Mahay less cash discount Sell merchandise on account to B. Corpas $2,500, Involce no. 514, and to R. Beltre $2,300, Invoice no. 51s. Post all entries to the subsidiary ledgers. Send checks to D. Salto and S. Meek in full payment less cash discounts Sell merchandise on account to 8. Santos $3,100, invoice no. 516, and to J. Revere $6,000, Invoice no. 517. Purchase merchandise from D. Salto $14,900, terms 1/10, 1/30; D. Posay $3,300, terms 1/30; and S. Gamel $5,400, terms 1/30. Post all entries to the subsidiary ledgers. Pay $200 cash for office supplies. Dally cash sales from January 21 to January 31 total $24,600. Make one journal entry for these sales Pay sales salaries $4,700 and office salaries $3,600. 18 20 21 21 22 22 23 25 27 22 28 31 Instructions a. Record the January transactions in a sales journal, a single-column purchases journal, a cash re- ceipts journal as shown in Illustration 7.9. a cash payments journal as shown in Illustration 7.16, and a two-column general journal. b. Post the journals to the general ledger. c. Prepare a trial balance at January 31, 2020, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information. 1. Office supplies at January 31 total $900. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1.500. 4. Interest of $50 has accrued on the note payable. d. Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January. e. Prepare and post adjusting and closing entries