Review the opening account balances in Winter Company's general and subsidiary ledgers on January 1, 2014. All accounts have normal debit and credit balances. Winters uses a perpetual inventory system. The cost of all merchandise sold was 40% of the sales price.

Winters' January transactions follow:
Jan. 3 Sold merchandise on credit to B. Sota $3,100, invoice no. 510, and J. Ebel $1,800, invoice no. 511.
5 Purchased merchandise on account from Welz Wares for $3,000 and Laux Supplies for $2,700.
7 Received cheques for $5,000 from S. Tang and $2,000 from B. Jacovetti on accounts.
8 Paid freight on merchandise purchased, $180.
9 Sent cheques to Liazuk Co. for $10,000 and Nguyen & Son for $11,000 in full payment of accounts.
9 Issued credit memo for $400 to J. Ebel for merchandise returned. The merchandise was restored to inventory.
10 Summary cash sales totaled $16,500.
11 Sold merchandise on credit to R. Draves for $1,900, invoice no. 512, and to S. Tang for $900, invoice no. 513.
15 Withdrew $2,000 cash for Winters's personal use.
16 Purchased merchandise on account from Nguyen & Son for $15,000, from Liazuk Co. for $13,900, and from Welz Wares for $1,500.
17 Purchased supplies on account from Laux Supplies, $400.
18 Returned $500 of merchandise to Liazuk and received credit.
20 Summary cash sales totaled $17,500.
21 Issued $15,000 note to Mikush Bros. in payment of balance due. The note bears an interest rate of 10% and is due in three months.
21 Received payment in full from S. Tang.
22 Sold merchandise on credit to B. Soto for $1,700, invoice no. 514, and to R. Draves for $800, invoice no. 515.
23 Sent cheques to Nguyen & Son and Liazuk Co. in full payment of accounts.
25 Sold merchandise on credit to B. Jacovetti for $3,500, invoice no. 516, and to J. Ebel for $6,100, invoice no. 517.
27 Purchased merchandise on account from Nguyen & Son for $14,500, from Laux Supplies for $1,200, and from Welz Wares for $2,800.
28 Purchased supplies on account from Laux Supplies, $800.
31 Summary cash sales totaled $19,920.
31 Paid salaries of $6,900.
31 Received payment in full from B. Soto and J. Ebel on account.
In addition to the accounts identified in the trial balance, the chart of accounts shows the following: No. 200 Notes Payable, No. 230 Interest Payable, No. 300 Income Summary, No. 310 A. Winters, Drawings, No. 401 Sales, No. 410 Sales Returns and Allowances, No. 505 Cost of Goods Sold, No. 711 Depreciation Expense, No. 718 Interest Expense, No. 722 Insurance Expense, No. 725 Salaries Expense, and No. 728 Supplies Expense.
Instructions
(a) Record the January transactions in the appropriate journal-sales, purchases, cash receipts, cash payments, and general.
(b) Enter the opening balances in general and subsidiary ledger accounts. Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed.
(c) Prepare an unadjusted trial balance at January 31, 2014. Determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
(d) Prepare and post adjusting journal entries. Prepare an adjusted trial balance, using the following information:
(1) Supplies at January 31 total $700
(2) Insurance coverage expires on September 30, 2014
(3) Annual depreciation on the building is $6,000 and on the equipment is $1,500
(4) Interest of $45 has accrued on the note payable
(5) A physical count of merchandise inventory has found $44,850 of goods on hand.
(e) Prepare a multiple-step income statement and a statement of owner's equity for January, and a classified balance sheet at the end of January.
(f) Prepare and post the closing entries.
(g) Prepare a post-closing trial balance?

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GENERAL LEDGER Account January 1, 2014 Opening Balance 35,050 14,000 39,000 Account Title No. 101 112 115 120 125 130 Prepaid insurance 140 Land 145 146 Accumulated depreciation-building 157 Equipment 158Accumulated depreciation-equipment 201 275 Mortgage payable 301 Accounts receivable Notes receivable Merchandise inventory Supplies 1,000 Building 100,000 6,450 1,500 Accounts payable 125,000 A. Winters, capital Accounts Receivable Accounts Payable Subsidiary Ledger Subsidiary Ledger January 1, 2014 Opening Balance $1,500 4,500 5,000 January 1, 2014 Opening Balance Customer R. Draves B. Jacovetti S. Tang Creditor Liazuk Co. Mikush Bros. Nguyen & Son 15,000 11,000