Bluma 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 Bluma are indicated in the working papers. Presented on the next page are a series of transactions for Bluma 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.
Jan.??3
Sell merchandise on account to B. Richey $3,100, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.
5Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.
7Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.
8Pay freight on merchandise purchased $235.
9Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.
9Issue credit of $300 to J. Forbes for merchandise returned.
10Summary daily cash sales total $15,500.
11Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.
12Pay rent of $1,000 for January.
13Receive payment in full from B. Richey and J. Forbes less cash discounts.
15Withdraw $800 cash by M. Bluma for personal use.
15Post all entries to the subsidiary ledgers.
16Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.
17Pay $400 cash for office supplies.
18Return $200 of merchandise to S. Hoyt and receive credit.
20Summary daily cash sales total $20,100.
21Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.
21Receive payment in full from S. LaDew less cash discount.
22Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $1,300, invoice no. 515.
22Post all entries to the subsidiary ledgers.
23Send checks to D. Omara and S. Hoyt in full payment less cash discounts.
25Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.
27Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.
27Post all entries to the subsidiary ledgers.
28Pay $200 cash for office supplies.
31Summary daily cash sales total $21,300.
31Pay sales salaries $4,300 and office salaries $3,800.
Instructions
(a)Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal as shown , a cash payments journal as shown , and a two-column general journal.
(b)Post the journals to the general ledger.
(c) Prepare a trial balance at January 31, 2012, 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, 2012.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
(d)Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January.
(e)Prepare and post adjusting and closing entries.
(f)Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.