Presented below are the sales and cash receipts journals for Wyrick Co. for its first month of

Question:

Presented below are the sales and cash receipts journals for Wyrick Co. for its first month of operations.

In addition, the following transactions have not been journalized for February 2011.
Feb. 2 Purchased merchandise on account from J.Vopat for $4,600, terms 2/10, n/30.
7 Purchased merchandise on account from P. Kneiser for $30,000, terms 1/10, n/30.
9 Paid cash of $1,250 for purchase of supplies.
12 Paid $4,508 to J.Vopat in payment for $4,600 invoice, less 2% discount.
15 Purchased equipment for $7,000 cash.
16 Purchased merchandise on account from J. Nunez $2,400, terms 2/10, n/30.
17 Paid $29,700 to P. Kneiser in payment of $30,000 invoice, less 1% discount.
20 Paid cash dividend of $1,100.
21 Purchased merchandise on account from G. Reedy for $7,800, terms 1/10, n/30.
28 Paid $2,400 to J. Nunez in payment of $2,400 invoice.
Instructions
(a) Open the following accounts in the general ledger.
101 Cash ..................311 Common Stock
112 Accounts Receivable .............332 Cash Dividends
120 Merchandise Inventory .............401 Sales
126 Supplies ...................414 Sales Discounts
157 Equipment .................505 Cost of Goods Sold
158 Accumulated Depreciation'Equipment ......631 Supplies Expense
201 Accounts Payable .............711 Depreciation Expense
(b) Journalize the transactions that have not been journalized in a one-column purchases journal and the cash payments journal (see Illustration E-15).
(c) Post to the accounts receivable and accounts payable subsidiary ledgers. Follow the sequence of transactions as shown in the problem.
(d) Post the individual entries and totals to the general ledger.
(e) Prepare a trial balance at February 28, 2011.
(f) Determine that the subsidiary ledgers agree with the control accounts in the general ledger.
(g) The following adjustments at the end of February are necessary.
(1) A count of supplies indicates that $300 is still on hand.
(2) Depreciation on equipment for February is $200.
Prepare the adjusting entries and then post the adjusting entries to the general ledger.
(h) Prepare an adjusted trial balance at February 28,2011.

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