The end-of-month trial balance of St. Paul Technology, Inc., at January 31, 2012, follows:

Additional data at January 31, 2012:
a. Supplies consumed during the month, $1,400. Half is selling expense, and the other half is general expense.
b. Depreciation for the month: building, $3,800; furniture, $4,600. One-fourth of depreciation is selling expense, and three-fourths is general expense.
c. Unearned sales revenue earned during January, $4,420.
d. Accrued salaries, a general expense, $1,100.
e. Inventory on hand, $63,460. St. Paul uses the perpetual inventory system. In 30 words or fewer, explain the difference between a sales discount and a purchase discount.
Requirements
1. Using four-column accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Date the balances of the following accounts January 1: Supplies; Building; Accumulated depreciation'building; Furniture; Accumulated depreciation' furniture; Unearned sales revenue; Common stock; and Retained earnings. Date the balance of Dividends, January 31. Also open the Income summary account.
2. Enter the trial balance on a worksheet, and complete the worksheet for the month ended January 31, 2012. St. Paul Technology groups all operating expenses under two accounts, Selling expense and General expense. Leave two blank lines under Selling expense and three blank lines under General expense.
3. Prepare the company's multi-step income statement and statement of retained earnings for the month ended January 31, 2012. Also prepare the balance sheet at that date in report form.
4. Journalize the adjusting and closing entries at January 31.
5. Post the adjusting and closingentries.

Transcribed Image Text:

ST. PAUL TECHNOLOGY, INC. Trial Balance January 31, 2012 Credit Debit Account S 16,260 Cash Accounts receivable 18,930 65,000 Inventory Supplies Building Accumulated depreciation-building 2,580 188,090 $ 35,300 44,800 Furniture Accumulated depreciation-furniture Accounts payable Salary payable 5,500 27,900 Uncarned sales revenue 6,480 Note payable, long-term Common stock 85,000 58,570 Retained earnings 93,620 Dividends 9,100 179,930 Sales revenue Sales discounts 7,100 Sales returns and allowances 8,080 Cost of goods sold Selling expense General expense 101,900 21,380 9,080 $492,300 Total $492,300