Wildhorse 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 Wildhorse are indicated in the working papers. Presented below are a series of transactions for Wildhorse 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 Account Title Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital January 1 Opening Balance $34,500 12,300 42,000 18,500 1,200 2,200 6,900 1,600 36,500 79,500 158 201 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,300 B. Santos 7,200 S. Mahay 3,800 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $7,500 R. Moses 17,000 D. Saito 12,000 Jan. 3 5 7 8 9 9 10 13 15 15 16 17 18 20 21 21 22 Sell merchandise on account to B. Corpas $3,300, invoice no. 510, and to J. Revere $1,900, invoice no. 511. Purchase merchandise from S. Gamel $6,000 and D. Posey $2,900, terms n/30. Receive checks from S. Mahay $3,800 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $245. Send checks to S. Meek for $7,500 less 2% cash discount, and to D. Saito for $12,000 less 1% cash discount. Issue credit of $300 to ). Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $15,500. 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 $1,200 for January. Receive payment in full from B. Corpas and ). Revere less cash discounts. Withdraw $800 cash by M. Wildhorse for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; S. Meek $14,400, terms 2/10, n/30; and S. Gamel $1,300, terms n/30. Pay $800 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $20,100. 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 $3,000, invoice no. 514, and to R. Beltre $2,200, 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 $3,200, invoice no. 516, and to J. Revere $7,000, invoice no. 517. Purchase merchandise from D. Saito $14,100, terms 1/10, n/30; D. Posey $3,200, 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 $22,200. Make one journal entry for these sales. Pay sales salaries $4,200 and office salaries $3,600. 22 23 27 28 31 31 Record the January transactions in a sales journal. (Post entries in the order presented in the problem statement.) Sales Journal si Cost of Good Sold Dr. Date Account Receivable Dr. Account Debited Invoice No. Ref. Jan. 12 Jan. 13 Jan. 15 Jan. 18 Jan. 20 Jan. 21 ) Jan. 21 Jan. 22 LINK TO TEXT LINK TO TEXT Record the January transactions in a single-column purchases journal. (Post entries in the order presented in the problem statement.) Purchases Journal P1 Date Account Credited Ref. Inventory Dr. Accounts Payable Cr. Terms n/30 n/30 1/10, n/30 2/10, n/30 n/30 1/10, n/30 n/30 n/30 LINK TO TEXT LINK TO TEXT Record the lanuary transactions in a cash receints iournal (Post entries in the order presented in the problem statement) Record the January transactions in a cash receipts journal. (Post entries in the order presented in the problem statement.) Cash Receipts Journal CR1 Date Cash Sales Discounts Dr. Sales Revenue Cr. Other Accounts Cr. Account Credited Ref. Dr. Cost of Good Sold Dr. Inventory Cr. Account Receivable Cr. 3800 Jan. 7 S. Mahay 3800 Jan. 7 B. Santos 2000 200 Jan. 10 15500 15500 9300 Jan. 13 B. Corpas 3300 Jan. 13 J. Revere Jan. 20 Jan. 21 S. Mahay Jan. 31 LINK TO TEXT LINK TO TEXT Record the January transactions in a cash payments journal. (Post entries in the order presented in the problem statement.) Cash Payments Journal CP1 Cash Accounts Payable Supplies Date Other Accounts Dr. Account Debited Ref. Inventory Cr. Dr. Dr. Cr. Record the January transactions in a two-column general journal. (Credit account titles are automatically indented wi Date Account Titles and Explanation Debit Credit (Issued credit for merchandise returned.) (Cost of merchandise returned.) (Received credit for returned goods.) (Payment of balance due.) LINK TO TEXT LINK TO TEXT Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash Date No. 101 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 Accounts Receivable Date Explanation No. 112 Balance Ref. Debit Credit Jan. 1 Balance 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 Inventory Date No. 120 Balance Explanation Debit Credit Jan. 1 Balance Supplies Date No. 125 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 Ref. Debit Credit No. 130 Balance Prepaid Insurance Date Explanation Jan. 1 Balance Equipment Date Explanation Jan. 1 Balance Accumulated Depreciation Equipment Date Explanation No. 157 Balance Ref. Debit Credit Ref. Debit No. 158 Balance Credit Jan. 1 Balance Ref. Debit Credit No. 200 Balance Notes Payable Date Explanation Jan. 21 Accounts Payable Date Explanation G1 No. 201 Balance Debit Credit Jan. 1 Balance Owner's Capital Date Explanation Ref. Debit No. 301 Balance Credit Jan. 1 Balance Owner's Drawings Date Explanation No. 306 Balance Debit Credit Ref. CP1 Jan 15 Owner's Drawings Date Explanation No. 306 Balance Debit Credit Ref. CP1 Jan 15 Sales Revenue Date Explanation Ref. Debit Credit No, 401 Balance Jan. 31 31 CR1 Sales Returns and Allowances Date Explanation Debit Credit No. 412 Balance Jan. 9 Sales Discounts Date Explanation No. 414 Balance Ref. Debit Credit CR1 Jan. 31 Cost of Goods Sold Date Explanation No. 505 Balance Ref. Debit Credit Jan. 31 31 Salaries and Wages Expense Date Explanation Debit Credit No. 627 Balance Ref. CP1 Jan. 31 Rent Expense Date Explanation Jan. 12 No. 729 Balance Debit Credit Ref. CP1 Accounts Receivable Subsidiary Ledger R. Beltre Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 1300 1600 1600 J. Revere Date Explanation Ref. Debit Credit Balance Jan. 3 B. Santos Date Explanation Ref. Credit Balance Jan. 1 Balance B. Santos Date Explanation Debit Credit Balance Jan. 1 Balance S. Mahey Date Explanation Ref. Debit Credit Balance Jan. 1 Balance B. Corpas Date Explanation Debit Credit Balance Jan. 3 Accounts Payable Subsidiary Ledger D. Posey Date Explanation Ref. Debit Credit Balance Jan. 5 P1 S. Meek Date Explanation Debit Credit Balance Jan. 1 Balance R. Moses Date Explanation Jan. 1 Balance Debit Credit Balance 21 D. Saito Date Explanation Jan. 1 Balance Ref. Debit Credit Balance D. Saito Date Explanation Ref. Debit Credit Balance Jan. 1 Balance S. Gamel Date Explanation Debit Credit Balance Jan. 5 LINK TO TEXT LINK TO TEXT 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 $900. 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. WILDHORSE COMPANY Worksheet Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accum. Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Owner's Capital Prepaid Insurance Equipment Accum. Depreciation Equipment Notes Payable Accounts Payable Interest 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 Totals Supplies Expense Insurance Expense Depreciation Expense Interest Expense Totals Net Income Totals LINK TO TEXT LINK TO TEXT Prepare a multiple-step income statement. WILDHORSE CO. Income Statement Prepare a multiple-step income statement. WILDHORSE CO. Income Statement LINK TO TEXT LINK TO TEXT Prepare a owner's equity statement for January. (List items that increase owner's equity first WILDHORSE CO. Owner's Equity Statement Prepare a owner's equity statement for January. (List items that increase owner's equity first.) WILDHORSE CO. Owner's Equity Statement LINK TO TEXT LINK TO TEXT Prepare a classified balance sheet at the end of January. (List Current Assets in order of liquidity.) WILDHORSE CO. Balance Sheet Assets Liabilities and Owner's Equity Wildhorse 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 Wildhorse are indicated in the working papers. Presented below are a series of transactions for Wildhorse 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 Account Title Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital January 1 Opening Balance $34,500 12,300 42,000 18,500 1,200 2,200 6,900 1,600 36,500 79,500 158 201 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,300 B. Santos 7,200 S. Mahay 3,800 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $7,500 R. Moses 17,000 D. Saito 12,000 Jan. 3 5 7 8 9 9 10 13 15 15 16 17 18 20 21 21 22 Sell merchandise on account to B. Corpas $3,300, invoice no. 510, and to J. Revere $1,900, invoice no. 511. Purchase merchandise from S. Gamel $6,000 and D. Posey $2,900, terms n/30. Receive checks from S. Mahay $3,800 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $245. Send checks to S. Meek for $7,500 less 2% cash discount, and to D. Saito for $12,000 less 1% cash discount. Issue credit of $300 to ). Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $15,500. 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 $1,200 for January. Receive payment in full from B. Corpas and ). Revere less cash discounts. Withdraw $800 cash by M. Wildhorse for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $14,000, terms 1/10, n/30; S. Meek $14,400, terms 2/10, n/30; and S. Gamel $1,300, terms n/30. Pay $800 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $20,100. 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 $3,000, invoice no. 514, and to R. Beltre $2,200, 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 $3,200, invoice no. 516, and to J. Revere $7,000, invoice no. 517. Purchase merchandise from D. Saito $14,100, terms 1/10, n/30; D. Posey $3,200, 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 $22,200. Make one journal entry for these sales. Pay sales salaries $4,200 and office salaries $3,600. 22 23 27 28 31 31 Record the January transactions in a sales journal. (Post entries in the order presented in the problem statement.) Sales Journal si Cost of Good Sold Dr. Date Account Receivable Dr. Account Debited Invoice No. Ref. Jan. 12 Jan. 13 Jan. 15 Jan. 18 Jan. 20 Jan. 21 ) Jan. 21 Jan. 22 LINK TO TEXT LINK TO TEXT Record the January transactions in a single-column purchases journal. (Post entries in the order presented in the problem statement.) Purchases Journal P1 Date Account Credited Ref. Inventory Dr. Accounts Payable Cr. Terms n/30 n/30 1/10, n/30 2/10, n/30 n/30 1/10, n/30 n/30 n/30 LINK TO TEXT LINK TO TEXT Record the lanuary transactions in a cash receints iournal (Post entries in the order presented in the problem statement) Record the January transactions in a cash receipts journal. (Post entries in the order presented in the problem statement.) Cash Receipts Journal CR1 Date Cash Sales Discounts Dr. Sales Revenue Cr. Other Accounts Cr. Account Credited Ref. Dr. Cost of Good Sold Dr. Inventory Cr. Account Receivable Cr. 3800 Jan. 7 S. Mahay 3800 Jan. 7 B. Santos 2000 200 Jan. 10 15500 15500 9300 Jan. 13 B. Corpas 3300 Jan. 13 J. Revere Jan. 20 Jan. 21 S. Mahay Jan. 31 LINK TO TEXT LINK TO TEXT Record the January transactions in a cash payments journal. (Post entries in the order presented in the problem statement.) Cash Payments Journal CP1 Cash Accounts Payable Supplies Date Other Accounts Dr. Account Debited Ref. Inventory Cr. Dr. Dr. Cr. Record the January transactions in a two-column general journal. (Credit account titles are automatically indented wi Date Account Titles and Explanation Debit Credit (Issued credit for merchandise returned.) (Cost of merchandise returned.) (Received credit for returned goods.) (Payment of balance due.) LINK TO TEXT LINK TO TEXT Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash Date No. 101 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 Accounts Receivable Date Explanation No. 112 Balance Ref. Debit Credit Jan. 1 Balance 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 Inventory Date No. 120 Balance Explanation Debit Credit Jan. 1 Balance Supplies Date No. 125 Balance Explanation Ref. Debit Credit Jan. 1 Balance 31 Ref. Debit Credit No. 130 Balance Prepaid Insurance Date Explanation Jan. 1 Balance Equipment Date Explanation Jan. 1 Balance Accumulated Depreciation Equipment Date Explanation No. 157 Balance Ref. Debit Credit Ref. Debit No. 158 Balance Credit Jan. 1 Balance Ref. Debit Credit No. 200 Balance Notes Payable Date Explanation Jan. 21 Accounts Payable Date Explanation G1 No. 201 Balance Debit Credit Jan. 1 Balance Owner's Capital Date Explanation Ref. Debit No. 301 Balance Credit Jan. 1 Balance Owner's Drawings Date Explanation No. 306 Balance Debit Credit Ref. CP1 Jan 15 Owner's Drawings Date Explanation No. 306 Balance Debit Credit Ref. CP1 Jan 15 Sales Revenue Date Explanation Ref. Debit Credit No, 401 Balance Jan. 31 31 CR1 Sales Returns and Allowances Date Explanation Debit Credit No. 412 Balance Jan. 9 Sales Discounts Date Explanation No. 414 Balance Ref. Debit Credit CR1 Jan. 31 Cost of Goods Sold Date Explanation No. 505 Balance Ref. Debit Credit Jan. 31 31 Salaries and Wages Expense Date Explanation Debit Credit No. 627 Balance Ref. CP1 Jan. 31 Rent Expense Date Explanation Jan. 12 No. 729 Balance Debit Credit Ref. CP1 Accounts Receivable Subsidiary Ledger R. Beltre Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 1300 1600 1600 J. Revere Date Explanation Ref. Debit Credit Balance Jan. 3 B. Santos Date Explanation Ref. Credit Balance Jan. 1 Balance B. Santos Date Explanation Debit Credit Balance Jan. 1 Balance S. Mahey Date Explanation Ref. Debit Credit Balance Jan. 1 Balance B. Corpas Date Explanation Debit Credit Balance Jan. 3 Accounts Payable Subsidiary Ledger D. Posey Date Explanation Ref. Debit Credit Balance Jan. 5 P1 S. Meek Date Explanation Debit Credit Balance Jan. 1 Balance R. Moses Date Explanation Jan. 1 Balance Debit Credit Balance 21 D. Saito Date Explanation Jan. 1 Balance Ref. Debit Credit Balance D. Saito Date Explanation Ref. Debit Credit Balance Jan. 1 Balance S. Gamel Date Explanation Debit Credit Balance Jan. 5 LINK TO TEXT LINK TO TEXT 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 $900. 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. WILDHORSE COMPANY Worksheet Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accum. Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Owner's Capital Prepaid Insurance Equipment Accum. Depreciation Equipment Notes Payable Accounts Payable Interest 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 Totals Supplies Expense Insurance Expense Depreciation Expense Interest Expense Totals Net Income Totals LINK TO TEXT LINK TO TEXT Prepare a multiple-step income statement. WILDHORSE CO. Income Statement Prepare a multiple-step income statement. WILDHORSE CO. Income Statement LINK TO TEXT LINK TO TEXT Prepare a owner's equity statement for January. (List items that increase owner's equity first WILDHORSE CO. Owner's Equity Statement Prepare a owner's equity statement for January. (List items that increase owner's equity first.) WILDHORSE CO. Owner's Equity Statement LINK TO TEXT LINK TO TEXT Prepare a classified balance sheet at the end of January. (List Current Assets in order of liquidity.) WILDHORSE CO. Balance Sheet Assets Liabilities and Owner's Equity