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 January 1 Opening Balance Number Account Title 101 Cash $37,250 112 Accounts Receivable 13,700 115 Notes Receivable 41,000 120 Inventory 15,500 126 Supplies 1.100 130 Prepaid Insurance 2,100 157 Equipment 6,450 158 Accumulated Depreciation-Equip. 1,600 201 Accounts Payable 27.000 301 Owner's Capital 88,500 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Opening Balance Customer R. Beltre $1,300 B. Santos 7,800 S. Mahay 4,600 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Opening Balance Customer S. Meek $8,000 R. Moses 12,000 D. Saito 7,000 3 Jan. Sell merchandise on account to B. Corpas $3,200, invoice no. 510, and to J. Revere $1,600, invoice no. 511. 5 Purchase merchandise from S. Gamel $5,000 and D. Posey $3,000, terms n/30. 7 Receive checks from S. Mahay $4,600 and B. Santos $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $240. 9 Send checks to S. Meek for $8,000 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 $14,500. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre $1,400, invoice no. 512, and to S. Mahay $900, invoice no. 513. 12 Pay rent of $1,400 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 $16,000, terms 1/10, n/30; S. Meek $14,800, terms 2/10, n/30; and S. Gamel $1,300, terms n/30. 17 Pay $400 cash for office supplies. 18 Return $300 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $19,100. Make one journal entry for these sales. 21 Issue $12,000 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 $2,300, 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 $3,100, invoice no. 516, and to J. Revere $6,000, invoice no. 517. 27 Purchase merchandise from D. Saito $14,900, terms 1/10, n/30; D. Posey $3,300, 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 $24,600. Make one journal entry for these sales. 31 Pay sales salaries $4,700 and office salaries $3,600. 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 $1,200. 4. Interest of $50 has accrued on the note payable. Trial Balance Account Titles Dr. Cr. Dr Cash Accounts Receivable Notes Receivable [ [ [ [ Inventory Supplies Prepaid Insurance Equipment [ Accum. Depreciation Equipment Notes Payable U U U U U U U U U U U U U U U U [ [ Accounts Payable Owner's Capital Owner's Drawings Sales Revenue Sales Returns and Allowances Sales Discounts [ [ [ [ [ [ [ Cost of Goods Sold Salaries and Wages Expense Rent Expense 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 $1,200. 4. Interest of $50 has accrued on the note payable. SANDHILLCOMPANY Worksheet Adjustments Adjusted Trial Balance | Dr. Cr. Dr. Cr. 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 $1,200. 4. Interest of $50 has accrued on the note payable. Balance Sheet Cr. Dr. Cr. INNO 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 $1,200. 4. Interest of $50 has accrued on the note payable. SANDHILLCOMPANY Worksheet Income Adjusted Trial Balance Statement Dr. Cr. Dr. INNN Prepare a multiple-step income statement. SANDHILLCO. Income Statement $ $ $ $ Your answer is partially correct. Prepare a owner's equity statement for January. (List items that increase owner's equity first.) SANDHILLCO. Owner's Equity Statement For the Month Ended January 31, 2022 Owner's, Capital, January 1, 2022 $ 88,500 Add 4: Net Income / (Loss) 22219 98519 Less ~) : Drawings 4 -800 i Owner's, Capital, January 31, 2022 A 97719 Prepare a classified balance sheet at the end of January. (List Current Assets in order of liquidity.) SANDHILL CO. Balance Sheet Assets $ $ $ Liabilities and Owner's Equity $ $ $ Prepare adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit (To adjust supplies) (To adjust insurance expense) (To adjust depreciation expense) (To adjust interest expense) e Textbook and Media 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 January 1 Opening Balance Number Account Title 101 Cash $37,250 112 Accounts Receivable 13,700 115 Notes Receivable 41,000 120 Inventory 15,500 126 Supplies 1.100 130 Prepaid Insurance 2,100 157 Equipment 6,450 158 Accumulated Depreciation-Equip. 1,600 201 Accounts Payable 27.000 301 Owner's Capital 88,500 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Opening Balance Customer R. Beltre $1,300 B. Santos 7,800 S. Mahay 4,600 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Opening Balance Customer S. Meek $8,000 R. Moses 12,000 D. Saito 7,000 3 Jan. Sell merchandise on account to B. Corpas $3,200, invoice no. 510, and to J. Revere $1,600, invoice no. 511. 5 Purchase merchandise from S. Gamel $5,000 and D. Posey $3,000, terms n/30. 7 Receive checks from S. Mahay $4,600 and B. Santos $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $240. 9 Send checks to S. Meek for $8,000 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 $14,500. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre $1,400, invoice no. 512, and to S. Mahay $900, invoice no. 513. 12 Pay rent of $1,400 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 $16,000, terms 1/10, n/30; S. Meek $14,800, terms 2/10, n/30; and S. Gamel $1,300, terms n/30. 17 Pay $400 cash for office supplies. 18 Return $300 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $19,100. Make one journal entry for these sales. 21 Issue $12,000 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 $2,300, 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 $3,100, invoice no. 516, and to J. Revere $6,000, invoice no. 517. 27 Purchase merchandise from D. Saito $14,900, terms 1/10, n/30; D. Posey $3,300, 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 $24,600. Make one journal entry for these sales. 31 Pay sales salaries $4,700 and office salaries $3,600. 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 $1,200. 4. Interest of $50 has accrued on the note payable. Trial Balance Account Titles Dr. Cr. Dr Cash Accounts Receivable Notes Receivable [ [ [ [ Inventory Supplies Prepaid Insurance Equipment [ Accum. Depreciation Equipment Notes Payable U U U U U U U U U U U U U U U U [ [ Accounts Payable Owner's Capital Owner's Drawings Sales Revenue Sales Returns and Allowances Sales Discounts [ [ [ [ [ [ [ Cost of Goods Sold Salaries and Wages Expense Rent Expense 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 $1,200. 4. Interest of $50 has accrued on the note payable. SANDHILLCOMPANY Worksheet Adjustments Adjusted Trial Balance | Dr. Cr. Dr. Cr. 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 $1,200. 4. Interest of $50 has accrued on the note payable. Balance Sheet Cr. Dr. Cr. INNO 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 $1,200. 4. Interest of $50 has accrued on the note payable. SANDHILLCOMPANY Worksheet Income Adjusted Trial Balance Statement Dr. Cr. Dr. INNN Prepare a multiple-step income statement. SANDHILLCO. Income Statement $ $ $ $ Your answer is partially correct. Prepare a owner's equity statement for January. (List items that increase owner's equity first.) SANDHILLCO. Owner's Equity Statement For the Month Ended January 31, 2022 Owner's, Capital, January 1, 2022 $ 88,500 Add 4: Net Income / (Loss) 22219 98519 Less ~) : Drawings 4 -800 i Owner's, Capital, January 31, 2022 A 97719 Prepare a classified balance sheet at the end of January. (List Current Assets in order of liquidity.) SANDHILL CO. Balance Sheet Assets $ $ $ Liabilities and Owner's Equity $ $ $ Prepare adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit (To adjust supplies) (To adjust insurance expense) (To adjust depreciation expense) (To adjust interest expense) e Textbook and Media