This company uses the perpetual system of inventory.

Check for these figures.

Cash Receipts Journal, total Cash DR: $68,094

Cash Payments Journal, total Cash CR: $62,185

Net Income: $19,351

Total Assets: $143,246

Total Post Closing Trial Balance: $144,871

Colorado Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidary ledger. Balances related to both the general ledger and the subsidary ledger for Colorado Co. are indicated in the working paper. Below are a series of transactions for the company for the month of January. Credit sales terms are 2/10, n/30. The cost of the merchandise sold was 62% of the sales price.

(Jan. 3) Sell merchandise on account to B. Richey $2,900, invoice no. 510, and to J. Forbes $1,800, invoice no. 511

(Jan. 5) Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30

(Jan. 7) Receive checks from S. Ladew $4000 and B. Garcia $2,000 after discount perios has lapsed.

(Jan. 8) Pay freight on merchandise purchased $235

(Jan. 9) Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.

(Jan. 9) Issue credit of $300 to J. Forbes for merchandise returned

(Jan. 10) Summary daily cash sales total $15,500

(Jan. 11) Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. Ladew $900, invoice no. 513

(Jan. 12) Pay rent of $1000 for January.

(Jan. 13) Receive payment in full from B. Richey and J.Forbes less cash discounts.

(Jan. 15) Withdrawal of $800 cash by J. Colorado for her personal use.

(Jan. 15) Post all entries to the subsidary ledgers.

(Jan 16.) Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30

(Jan. 17) Pay $600 cash for office supplies.

(Jan. 18) Return $200 of merchandise to S. Hoyt and receive credit.

(Jan. 20) Summary daily cash sales total $20,100.

(Jan. 21) Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.

(Jan. 21) Receive payment in full from S. LaDew less cash discount

(Jan. 22) Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $2,800, invoice no. 517.

(Jan. 22) Post all entries to the subsidary ledgers.

(Jan. 23) Send checks to D. Omara and S. Hoyt in full payment less cash discount.

(Jan. 25) Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.

(Jan. 27) Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30

(Jan. 27) Post all entries to the subsidary ledgers

(Jan. 28) Pay $200 cash for office supplies

(Jan. 31) Summary daily cash sales total $21,300.

(Jan. 31) Pay total salaries of $8,100.

Instructions

(a) Record the January transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two- column General Journal.

(b) Post the journals to the General Ledger

(c) Prepare a Trial Balance at January 31, 2018, in the Trial Balance columns of the worksheet. Complete the worksheet using the following additional information.

1. Office supplies at January 31 total $750

2. Insurance coverage expires on October 31, 2018

3. Annual depreciation on equipment is $1,500.

4. Interest of $50 has accrued on the note payable.

(d) Prepare a multiple-step Income Statement an on Owner's Equity Statement for January and a Classified Balance Sheet at the end of January.

(e) Prepare and post adjusting and closing entries.

(f) Prepare a Post-Closing Trial Balance, and determine whether the subsidary ledgers agree with the control accounts in the General Ledger.