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 ledgers for Sandhill are indicated in the working papers presented below. Also following 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.

GENERAL LEDGER
Account Number		Account Title		January 1 Opening Balance
101		Cash		$32,250
112		Accounts Receivable		12,300
115		Notes Receivable		39,000
120		Inventory		20,000
126		Supplies		1,700
130		Prepaid Insurance		1,500
157		Equipment		6,900
158		Accumulated DepreciationEquip.		1,600
201		Accounts Payable		34,000
301		Owners Capital		78,050

Schedule of Accounts Receivable (from accounts receivable subsidiary ledger)
Customer		January 1 Opening Balance
R. Beltre		$1,700
B. Santos		7,500
S. Mahay		3,100

Schedule of Accounts Payable (from accounts payable subsidiary ledger)
Customer		January 1 Opening Balance
S. Meek		$9,000
R. Moses		18,000
D. Saito		7,000

Jan.	3		Sell merchandise on account to B. Corpas $3,300, invoice no. 510, and to J. Revere $1,700, invoice no. 511.
	5		Purchase merchandise from S. Gamel $6,000 and D. Posey $3,000, terms n/30.
	7		Receive checks from S. Mahay $3,100 and B. Santos $2,000 after discount period has lapsed.
	8		Pay freight on merchandise purchased $220.
	9		Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $7,000 less 1% cash discount.
	9		Issue credit of $300 to J. Revere for merchandise returned.
	10		Daily cash sales from January 1 to January 10 total $17,000. Make one journal entry for these sales.
	11		Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay $900, invoice no. 513.
	12		Pay rent of $2,000 for January.
	13		Receive payment in full from B. Corpas and J. Revere less cash discounts.
	15		Withdraw $800 cash by M. Sandhill for personal use.
	15		Post all entries to the subsidiary ledgers.
	16		Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; S. Meek $14,600, terms 2/10, n/30; and S. Gamel $2,000, terms n/30.
	17		Pay $700 cash for office supplies.
	18		Return $400 of merchandise to S. Meek and receive credit.
	20		Daily cash sales from January 11 to January 20 total $21,600. Make one journal entry for these sales.
	21		Issue $18,000 note, maturing in 90 days, to R. Moses in payment of balance due.
	21		Receive payment in full from S. Mahay less cash discount.
	22		Sell merchandise on account to B. Corpas $2,500, invoice no. 514, and to R. Beltre $2,100, invoice no. 515.
	22		Post all entries to the subsidiary ledgers.
	23		Send checks to D. Saito and S. Meek for full payment less cash discounts.
	25		Sell merchandise on account to B. Santos $3,500, invoice no. 516, and to J. Revere $6,000, invoice no. 517.
	27		Purchase merchandise from D. Saito $14,200, terms 1/10, n/30; D. Posey $3,400, terms n/30; and S. Gamel $5,400, terms n/30.
	27		Post all entries to the subsidiary ledgers.
	28		Pay $200 cash for office supplies.
	31		Daily cash sales from January 21 to January 31 total $22,200. Make one journal entry for these sales.
	31		Pay sales salaries $4,600 and office salaries $3,400.

Prepare a trial balance at January 31, 2022, 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, 2022. 3. Annual depreciation on the equipment is $1,500. 4. Interest of $50 has accrued on the note payable. Trial Balance Adjustments Account Titles Dr. Cr. Dr. Cash Accounts Receivable Notes Receivable Supplies Prepaid Insurance Equipment Accum. Depreciation Equipment Notes Payable Accounts Payable Owner's Capital Owner's Drawings Sales Revenue Sales Returns and Allowances Sales Discounts Salaries and Wages Expense Rent Expense Totals Interest Payable Supplies Expense Insurance Expense Depreciation Expense Interest Expense Totals Net Income Totals Prepare a multiple-step income statement. SANDHILLCO. Income Statement $ $ Question 1 of 1 16.62 / 50 E III $ Sales Revenues Income From Operations Net Sales Revenue Other Expenses and Losses Attempts: 0 of 3 used Submit Answer Total Operating Expenses