Selected accounts from the chart of accounts of Valdez Company are shown below.

101 ...........Cash

112 ...........Accounts Receivable

120 ...........Inventory

126 ...........Supplies

157 ...........Equipment

201 ...........Accounts Payable

401 ...........Sales

412 ...........Sales Returns and Allowances

414 ...........Sales Discounts

505 ...........Cost of Goods Sold

726 ...........Salaries and Wages Expense

The cost of all merchandise sold was 60% of the sales price. During January, Valdez completed the following transactions.

Jan. 3 Purchased merchandise on account from Pirkov Co. $10,000.

4 Purchased supplies for cash $80.

4 Sold merchandise on account to Hull $5,600, invoice no. 371, terms 1/10, n/30.

5 Returned $300 worth of damaged goods purchased on account from Pirkov Co. on January 3.

6 Made cash sales for the week totaling $3,750.

8 Purchased merchandise on account from Dubois Co. $4,500.

9 Sold merchandise on account to Phelan Corp. $6,400, invoice no. 372, terms 1/10, n/30.

11 Purchased merchandise on account from Akers Co. $3,700.

13 Paid in full Pirkov Co. on account less a 2% discount.

13 Made cash sales for the week totaling $6,260.

15 Received payment from Phelan Corp. for invoice no. 372.

15 Paid semi-monthly salaries of $14,300 to employees.

17 Received payment from Hull for invoice no. 371.

17 Sold merchandise on account to Mayr Co. $1,200, invoice no. 373, terms 1/10, n/30.

19 Purchased equipment on account from Barb Corp. $5,500.

20 Cash sales for the week totaled $3,200.

20 Paid in full Dubois Co. on account less a 2% discount.

23 Purchased merchandise on account from Pirkov Co. $7,800.

24 Purchased merchandise on account from Fifer Corp. $5,100.

27 Made cash sales for the week totaling $4,230.

30 Received payment from Mayr Co. for invoice no. 373.

31 Paid semi-monthly salaries of $14,300 to employees.

31 Sold merchandise on account to Hull $9,330, invoice no. 374, terms 1/10, n/30.

Valdez Company uses the following journals.

1. Sales journal.

2. Single-column purchases journal.

3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.

4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr.

5. General journal.

Instructions

Using the selected accounts provided:

(a) Record the January transactions in the appropriate journal noted.

(b) Foot and crossfoot all special journals.

(c) Show how postings would be made by placing ledger account numbers and checkmarks as needed in the journals. (Actual posting to ledger accounts is not required.)