Sunland 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 Sunland are indicated in the working papers presented below. Also following are a series of transactions for Sunland 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 | $32,500 |
112 | Accounts Receivable | 13,500 |
115 | Notes Receivable | 41,000 |
120 | Inventory | 18,500 |
126 | Supplies | 1,400 |
130 | Prepaid Insurance | 2,500 |
157 | Equipment | 8,700 |
158 | Accumulated Depreciation-Equip. | 1,500 |
201 | Accounts Payable | 31,000 |
301 | Owner's Capital | 85,600 |
Schedule of Accounts Receivable
(from accounts receivable subsidiary ledger) |
Customer | January 1 Opening Balance |
R. Beltre | $1.800 |
B. Santos | 7,800 |
5. Mahay | 3,900 |
Schedule of Accounts Payable
(from accounts payable subsidiary ledger)
Customer | January 1 Opening Balance |
5. Meek | $7,000 |
R. Moses | 15,000 |
D. Saito | 9,000 |
Jan. 3 Sell merchandise on account to B. Corpas $3,100, invoice no. 510 , and to J. Revere $1,500, invoice no. 511 . 5 Purchase merchandise from 5 , Gamel $6,000 and D. Posey $2,500, terms n/30. 7 Receive checks from S. Mahay $3,900 and B. Santos $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $245. 9 Send checks to S. Meek for $7,000 less 2% cash discount, and to D. Saito for $9,000 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 $18,000. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre $1,800, 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. Sunland for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $16,000, terms 1/10,n/30;5. Meek $15,000, terms 2/10, n/30; and S. Gamel $1,100, terms n/30. 17 Pay $500 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 $22,600. Make one journal entry for these sales. 21 Issue $15,000 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 $2,600, involce no, 514 , and to R. Beltre $2,300, invoice no. 515 . 15. Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D, Saito $16,000, terms 1/10,n/30,5. Meek $15,000, terms 2/10,n/30; and $, Gamel $1,100, terms n/30, 17. Par $500 cash for office supplies. 18 Return $300 of merchandise to 5.M Meek and receive credit. 20. Daily cash sales from January 11 to January 20 total $22,600. Make one journal entry for these sales. 21 Issue $15,000 note, maturing in 90 days, to R. Moses in parment of balance due. 21 Receive payment in full from S. Mahay less cash discount. 22. Sell merchandise on account to B. Corpas $2,600 involce no 514 , and to R Beltre $2,300. involce 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 $3.000, involce no, 516 , and to , Revere $6,500. involce no, 517 . termsn/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 $21,600. Make one journal entry for these sales. 31 Pay sales salaries $4,500 and office salaries $3,800. Record the January transactions in a cash receipts journal. (Post entries in the order presented in the problem statement. Select "Not Applicable in Account Credited column, if no customer is selected.) Record the January transactions in a cash receipts journal. Post entrles in the order presented in the problem statement Select Not Record the January transactions in a cash payments journal. (Post entries in the order presented in the problem statement. Select "Not Applicable" in Account Debited column, if no customer is selected) Record the January transactions in a two-column general journal. (Credit occount titles are outomoticolly indented when the amount is entered, Do not indent manually Record joumal entries in the order presented in the problem. Lust elf debit entries before credit entries)