The post-closing trial balance for Cortez Co. is as follows.

The subsidiary ledgers contain the following information: (1) accounts receivable'J. Anders $2,500, F. Cone $7,500, T. Dudley $5,000; (2) accounts payable'J. Feeney $10,000, D. Goodman $18,000, and K. Inwood $15,000. The cost of all merchandise sold was 60% of the sales price.The transactions for January 2011 are as follows.Jan. 3 Sell merchandise to M. Rensing $5,000, terms 2/10, n/30.5 Purchase merchandise from E.Vietti $2,000, terms 2/10, n/30.7 Receive a check from T. Dudley $3,500.11 Pay freight on merchandise purchased $300.12 Pay rent of $1,000 for January.13 Receive payment in full from M. Rensing.14 Post all entries to the subsidiary ledgers. Issued credit of $300 to J. Anders for returned merchandise.15 Send K. Inwood a check for $14,850 in full payment of account, discount $150.17 Purchase merchandise from G. Marley $1,600, terms 2/10, n/30.18 Pay sales salaries of $2,800 and office salaries $2,000.20 Give D. Goodman a 60-day note for $18,000 in full payment of account payable.23 Total cash sales amount to $9,100.24 Post all entries to the subsidiary ledgers. Sell merchandise on account to F. Cone $7,400, terms 1/10, n/30.27 Send E.Vietti a check for $950.29 Receive payment on a note of $40,000 from B. Lemke.30 Post all entries to the subsidiary ledgers. Return merchandise of $300 to G. Marley for credit.Instructions(a) Open general and subsidiary ledger accounts for the following.101 Cash...............301 B. Cortez, Capital112 Accounts Receivable..........401 Sales115 Notes Receivable..........412 Sales Returns and Allowances120 Merchandise Inventory.........414 Sales Discounts157 Equipment..............505 Cost of Goods Sold158 Accumulated Depreciation'Equipment. 726 Sales Salaries Expense200 Notes Payable............727 Office Salaries Expense201 Accounts Payable..........729 Rent Expense(b) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal (see Illustration 7-9), a cash payments journal (see Illustration 7-16), and a general journal.(c) Post the appropriate amounts to the general ledger.(d) Prepare a trial balance at January 31, 2011.(e) Determine whether the subsidiary ledgers agree with controlling accounts in the generalledger.

Transcribed Image Text:

CORTEZ CO. Post-Closing Trial Balance December 31, 2010 Debit $ 41,500 15.000 45,000 23,000 6,450 Credit Cash Accounts Receivable Notes Receivable Merchandise Inventory Equipment Accumulated Depreciation-Equipment Accounts Payable B. Cortez, Capital $ 1,500 43,000 86,450 $130.950 $130,950