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 ledgers for Wildhorse are indicated in the working papers presented below. Also following are a series of transactions for Wildhorse Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price. GENERAL LEDGER Account Number Account Title January 1 Opening Balance $38.500 101 Cash 112 12.900 115 Accounts Receivable Notes Receivable Inventory 36,000 120 16,500 126 1,800 130 1.600 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. 157 8,700 158 1,400 201 Accounts Payable 33,500 301 Owner's Capital 81.100 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) Customer January 1 Opening Balance R. Beltre $1,200 B. Santos 8,000 S. Mahay 3,700 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $7,500 R. Moses 14,000 D. Saito 12,000 Jan 3 5 5 7 8 9 9 10 11 12 13 Sell merchandise on account to B.Corpas $3,100, invoice no. 510, and to J. Revere $1,700, invoice no.511 Purchase merchandise from S. Gamel $5,000 and D. Posey $2,400, terms n/30. Receive checks from S. Mahay $3,700 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $230. 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 J. Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $18,000. 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 $1,600 for January Receive payment in full from B. Corpas and J. 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 $15,000, terms 1/10, 1/30;S. Meek $14,600, terms 2/10, 1/30; and S. Gamel $1,200, terms n/30 Pay $800 cash for office supplies. Return $200 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $22,600. Make one journal entry for these sales. Issue $14,000 note, maturing in 90 days, to R. Moses in payment of balance due. Receive payment in full from S. Mahay less cash discount. 15 15 16 17 18 20 21 21 22 22 23 25 27 Sell merchandise on account to B.Corpas $2,800, invoice no. 514, and to R. Beltre $2,300, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Saito and S. Meek for full payment less cash discounts. Sell merchandise on account to B. Santos $3,900, invoice no. 516, and to J. Revere $7.000, invoice no. 517. Purchase merchandise from D. Salto $14,300, terms 1/10,n/30; D. Posey $3,400, terms n/30; and S. Gamel $5,800, 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 $3,000. 27 28 31 31 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 ledgers for Wildhorse are indicated in the working papers presented below. Also following are a series of transactions for Wildhorse Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price. GENERAL LEDGER Account Number Account Title January 1 Opening Balance $38.500 101 Cash 112 12.900 115 Accounts Receivable Notes Receivable Inventory 36,000 120 16,500 126 1,800 130 1.600 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. 157 8,700 158 1,400 201 Accounts Payable 33,500 301 Owner's Capital 81.100 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) Customer January 1 Opening Balance R. Beltre $1,200 B. Santos 8,000 S. Mahay 3,700 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $7,500 R. Moses 14,000 D. Saito 12,000 Jan 3 5 5 7 8 9 9 10 11 12 13 Sell merchandise on account to B.Corpas $3,100, invoice no. 510, and to J. Revere $1,700, invoice no.511 Purchase merchandise from S. Gamel $5,000 and D. Posey $2,400, terms n/30. Receive checks from S. Mahay $3,700 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $230. 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 J. Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $18,000. 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 $1,600 for January Receive payment in full from B. Corpas and J. 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 $15,000, terms 1/10, 1/30;S. Meek $14,600, terms 2/10, 1/30; and S. Gamel $1,200, terms n/30 Pay $800 cash for office supplies. Return $200 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $22,600. Make one journal entry for these sales. Issue $14,000 note, maturing in 90 days, to R. Moses in payment of balance due. Receive payment in full from S. Mahay less cash discount. 15 15 16 17 18 20 21 21 22 22 23 25 27 Sell merchandise on account to B.Corpas $2,800, invoice no. 514, and to R. Beltre $2,300, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Saito and S. Meek for full payment less cash discounts. Sell merchandise on account to B. Santos $3,900, invoice no. 516, and to J. Revere $7.000, invoice no. 517. Purchase merchandise from D. Salto $14,300, terms 1/10,n/30; D. Posey $3,400, terms n/30; and S. Gamel $5,800, 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 $3,000. 27 28 31 31