Accounting Cycle Review 7-01 a1-f2 Pharoah 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 Pharoah are indicated in the working papers. Presented below are a series of transactions for Pharoah 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 101 112 115 120 126 130 157 158 201 301 Account Title Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital January 1 Opening Balance $38,250 12,300 42.000 15,500 1,500 2.000 8,700 1,600 37,000 81,650 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,600 B. Santos 7.300 S. Mahay 3,400 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek 59,000 R. Moses 17,000 D. Saito 11,000 Jan. 3 5 N 7 8 9 9 10 11 12 13 15 15 16 17 Sell merchandise on account to B. Corpas $3,400, invoice no. 510, and to J. Revere $2,000, invoice no. 511. Purchase merchandise from S. Gamel $6,000 and D. Posey $2,900, terms n/30. Receive checks from S. Mahay $3,400 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $225. Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $11,000 less 1% cash discount. Issue credit of $300 to J. Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $17,500. Make one journal entry for these sales. Sell merchandise on account to R. Beltre $1,600, 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 ). Revere less cash discounts. Withdraw $800 cash by M. Pharoah for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; S. Meek $14,500, terms 2/10, n/30; and S. Gamel $1,500, terms n/30. Pay $400 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $22,100. Make one journal entry for these sales. Issue $17,000 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 $2,900, invoice no. 514, and to R. Beltre $2,500, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Saito and S. Meek in full payment less cash discounts. Sell merchandise on account to B. Santos $3,900, invoice no. 515, and to J. Revere $6,100, invoice no. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; D. Posey $3,300, terms n/30; and S. Gamel $5,700, terms n/30. Post all entries to the subsidiary ledgers. Pay $200 cash for office supplies. Daily cash sales from January 21 to January 31 total $23,700. Make one journal entry for these sales. Pay sales salaries $4,900 and office salaries $3,800. 18 20 21 21 22 22 23 517. 25 27 27 28 31 31 Your answer is partially correct. Try again. 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 $1,000. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1,800. 4. Interest of $50 has accrued on the note payable. Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash No. 101 Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 31 CR1 31 CP1 Accounts Receivable No. 112 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance 31 S1 31 CR1 G1 Notes Receivable Date Explanation No. 115 Balance Ref. Debit Credit Jan. 1 Balance Inventory Date No. 120 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 P1 31 S1 31 CR1 8 CP1 31 CP1 9 G1 18 G1 Supplies No. 125 Supplies Date No. 125 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 CP1 Prepaid Insurance Date Explanation No. 130 Balance Ref. Debit Credit Jan. 1 Balance Equipment Date Explanation No. 157 Balance Ref. Debit Credit Jan. 1 Balance Accumulated Depreciation Equipment Explanation Jan. 1 Balance No. 158 Balance Date Ref. Debit Credit No. 200 Balance Ref. Debit Credit Notes Payable Date Explanation Jan. 21 Accounts Payable Date Explanation G1 No. 201 Balance Ref. Debit Credit Jan. 1 Balance V 31 P1 31 CP1 18 G1 21 G1 Owner's Capital Date Explanation No. 301 Balance Ref. Debit Credit Jan. 1 Balance Owner's Drawings Date Explanation No. 306 Balance Ref. Debit Credit Jan 15 CP1 Sales Revenue Date Explanation No, 401 Balance Ref. Debit Credit Jan. 31 S1 31 CR: Sales Returns and Allowances Date Explanation No. 412 Balance Ref. Debit Credit Jan. 9 G1 Sales Discounts Date Explanation No. 414 Balance Ref. Debit Credit Jan. 31 CR1 Cost of Goods Sold Date Explanation No. 505 Balance Ref. Debit Credit Jan. 31 Si 31 CR1 9 G1 Salaries and Wages Expense Date Explanation No. 627 Balance Ref. Debit Credit Jan. 31 CP1 Rent Expense Explanation No. 729 Balance Date Ref. Debit Credit Jan. 12 CP1 Accounts Receivable Subsidiary Ledger R. Beltre Date Explanation Ref. Debit Credit Balance Jan. 1 Balance BE 11 S1 22 S1 J. Revere Date Explanation Ref. Debit Credit Balance Jan. 3 S1 9 G1 13 CR1 25 S1 B. Santos Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 7 CR1 25 S1 S. Mahey Date Explanation Ref. Debit Credit Balance Jan. 1 Balance TOO 7 CR1 11 51 21 CR1 B. Corpas Date Explanation Ref. Debit Credit Balance Jan. 3 S1 13 CR1 22 S1 Accounts Payable Subsidiary Ledger D. Posey Date Explanation Ref. Debit Credit Balance Jan. 5 P1 27 P1 S. Meek Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 9 CP1 16 P1 18 G1 23 CP1 R. Moses Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 21 G1 D. Saito Date Explanation Ref. Debit Credit Balance Jan. 1 Balance V 9 CP1 16 P1 23 CP: 27 P1 BONI 00 S. Gamel Date Explanation Ref. Debit Credit Balance Jan. 5 P1 16 P1 udo 27 P1 Accounting Cycle Review 7-01 a1-f2 Pharoah 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 Pharoah are indicated in the working papers. Presented below are a series of transactions for Pharoah 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 101 112 115 120 126 130 157 158 201 301 Account Title Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital January 1 Opening Balance $38,250 12,300 42.000 15,500 1,500 2.000 8,700 1,600 37,000 81,650 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,600 B. Santos 7.300 S. Mahay 3,400 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek 59,000 R. Moses 17,000 D. Saito 11,000 Jan. 3 5 N 7 8 9 9 10 11 12 13 15 15 16 17 Sell merchandise on account to B. Corpas $3,400, invoice no. 510, and to J. Revere $2,000, invoice no. 511. Purchase merchandise from S. Gamel $6,000 and D. Posey $2,900, terms n/30. Receive checks from S. Mahay $3,400 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $225. Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $11,000 less 1% cash discount. Issue credit of $300 to J. Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $17,500. Make one journal entry for these sales. Sell merchandise on account to R. Beltre $1,600, 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 ). Revere less cash discounts. Withdraw $800 cash by M. Pharoah for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; S. Meek $14,500, terms 2/10, n/30; and S. Gamel $1,500, terms n/30. Pay $400 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $22,100. Make one journal entry for these sales. Issue $17,000 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 $2,900, invoice no. 514, and to R. Beltre $2,500, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Saito and S. Meek in full payment less cash discounts. Sell merchandise on account to B. Santos $3,900, invoice no. 515, and to J. Revere $6,100, invoice no. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; D. Posey $3,300, terms n/30; and S. Gamel $5,700, terms n/30. Post all entries to the subsidiary ledgers. Pay $200 cash for office supplies. Daily cash sales from January 21 to January 31 total $23,700. Make one journal entry for these sales. Pay sales salaries $4,900 and office salaries $3,800. 18 20 21 21 22 22 23 517. 25 27 27 28 31 31 Your answer is partially correct. Try again. 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 $1,000. 2. Insurance coverage expires on October 31, 2020. 3. Annual depreciation on the equipment is $1,800. 4. Interest of $50 has accrued on the note payable. Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash No. 101 Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 31 CR1 31 CP1 Accounts Receivable No. 112 Balance Date Explanation Ref. Debit Credit Jan. 1 Balance 31 S1 31 CR1 G1 Notes Receivable Date Explanation No. 115 Balance Ref. Debit Credit Jan. 1 Balance Inventory Date No. 120 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 P1 31 S1 31 CR1 8 CP1 31 CP1 9 G1 18 G1 Supplies No. 125 Supplies Date No. 125 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 CP1 Prepaid Insurance Date Explanation No. 130 Balance Ref. Debit Credit Jan. 1 Balance Equipment Date Explanation No. 157 Balance Ref. Debit Credit Jan. 1 Balance Accumulated Depreciation Equipment Explanation Jan. 1 Balance No. 158 Balance Date Ref. Debit Credit No. 200 Balance Ref. Debit Credit Notes Payable Date Explanation Jan. 21 Accounts Payable Date Explanation G1 No. 201 Balance Ref. Debit Credit Jan. 1 Balance V 31 P1 31 CP1 18 G1 21 G1 Owner's Capital Date Explanation No. 301 Balance Ref. Debit Credit Jan. 1 Balance Owner's Drawings Date Explanation No. 306 Balance Ref. Debit Credit Jan 15 CP1 Sales Revenue Date Explanation No, 401 Balance Ref. Debit Credit Jan. 31 S1 31 CR: Sales Returns and Allowances Date Explanation No. 412 Balance Ref. Debit Credit Jan. 9 G1 Sales Discounts Date Explanation No. 414 Balance Ref. Debit Credit Jan. 31 CR1 Cost of Goods Sold Date Explanation No. 505 Balance Ref. Debit Credit Jan. 31 Si 31 CR1 9 G1 Salaries and Wages Expense Date Explanation No. 627 Balance Ref. Debit Credit Jan. 31 CP1 Rent Expense Explanation No. 729 Balance Date Ref. Debit Credit Jan. 12 CP1 Accounts Receivable Subsidiary Ledger R. Beltre Date Explanation Ref. Debit Credit Balance Jan. 1 Balance BE 11 S1 22 S1 J. Revere Date Explanation Ref. Debit Credit Balance Jan. 3 S1 9 G1 13 CR1 25 S1 B. Santos Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 7 CR1 25 S1 S. Mahey Date Explanation Ref. Debit Credit Balance Jan. 1 Balance TOO 7 CR1 11 51 21 CR1 B. Corpas Date Explanation Ref. Debit Credit Balance Jan. 3 S1 13 CR1 22 S1 Accounts Payable Subsidiary Ledger D. Posey Date Explanation Ref. Debit Credit Balance Jan. 5 P1 27 P1 S. Meek Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 9 CP1 16 P1 18 G1 23 CP1 R. Moses Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 21 G1 D. Saito Date Explanation Ref. Debit Credit Balance Jan. 1 Balance V 9 CP1 16 P1 23 CP: 27 P1 BONI 00 S. Gamel Date Explanation Ref. Debit Credit Balance Jan. 5 P1 16 P1 udo 27 P1