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

In addition, the following transactions have not been journalized for February 2014.
Feb. 2 Purchased merchandise on account from B. Setterstrom for $5,600, terms 2/10, n/30.
7 Purchased merchandise on account from A. Dambro for $23,000, terms 1/10, n/30.
9 Paid cash of $980 for purchase of supplies.
12 Paid $5,488 to B. Setterstrom in payment for $5,600 invoice, less 2% discount.
15 Purchased equipment for $4,500 cash.
16 Purchased merchandise on account from D. Budke $1,900, terms 2/10, n/30.
17 Paid $22,770 to A. Dambro in payment of $23,000 invoice, less 1% discount.
20 S. Lowery withdrew cash of $800 from the business for personal use.
21 Purchased merchandise on account from Eberle Company for $8,000, terms 1/10, n/30.
28 Paid $1,900 to D. Budke in payment of $1,900 invoice.

Instructions
(a) Open the following accounts in the general ledger.
101 Cash
112 Accounts Receivable
120 Inventory
126 Supplies
157 Equipment
158 Accumulated Depreciation—Equipment
201 Accounts Payable
301 Owner’s Capital
306 Owner’s Drawings
401 Sales Revenue
414 Sales Discounts
505 Cost of Goods Sold
631 Supplies Expense
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 7-16).
(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, 2014.
(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 $200 is still on hand.
(2) Depreciation on equipment for February is $150.
Prepare the adjusting entries and then post the adjusting entries to the general ledger.
(h) Prepare an adjusted trial balance at February 28,2014.

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SALES JOURNAL S1 Accounts Receivable Dr. Cost of Goods Sold Dr Account Debited Inventory Cr 2,400 3,000 3,900 3,300 12,600 Date Ref, Sales Revenue Cr 4,000 5,000 6,500 5,500 21,000 Feb. 3 C. Ogleby 9 S. Hauke 12 T. Ghosh 26 W. Hoy CASH RECEIPTS JOURNAL CR1 Sales Accounts Sales Other Owner's Cash Discounts Receivable Revenue Accounts Cost of Goods Sold Dr Date Account Credited Ref.Dr Dr Cr Inventory Cr I. Feb. Owner's Capital 23,000 4,500 3,960 120 5,000 36,580 23,000 4,500 2,700 13 C. Ogleby 18 Inventory 26 S. Hauke 40 4,000 120 5,000 9,000 40 4,500 23,120 2,700