The post-closing trial balance for Perrault Music Co. follows:

The subsidiary ledgers contain the following information:

1. Accounts Receivable?S. Armstrong, $6,500; R. Goge, $30,000; B. Lu, $1,500

2. Accounts Payable?Denomme Corp., $4,000; Harms Distributors, $16,000; Watson & Co., $14,200 Perrault Music Co. uses a perpetual inventory system and reports under ASPE. The transactions for January 2021 are as follows:

Jan. 3 Sold merchandise to B. Rohl, $3,000. The cost of goods sold was $1,250.

5 Purchased merchandise from Warren Parts, $2,900.

7 Received a cheque from S. Armstrong, $4,000, in partial payment of its account.

11 Paid Lindon Co. freight on merchandise purchased, $350.

13 Received payment of account in full from B. Rohl.

14 Issued a credit memo to R. Goge for $6,000 as a sales allowance for a previous sale on account.

Jan. 15 Sent Harms Distributors a cheque in full payment of account.

17 Purchased merchandise from Voyer Co., $4,900.

18 Paid salaries of $3,900.

20 Gave Watson & Co. a 60-day note for $14,000 as a partial payment of account payable.

23 Total cash sales amounted to $7,700. The cost of goods sold was $4,840.

24 Sold merchandise on account to B. Lu, $7,800. The cost of goods sold was $3,300.

27 Sent Warren Parts a cheque for $1,150 in partial payment of the account.

29 Received payment on a note receivable of $35,000 from S. Lava.

30 Returned merchandise costing $400 to Voyer Co. for credit.

31 M. Perrault withdrew $1,300 cash for personal use.

Instructions

a. Open general and subsidiary ledger accounts and record December 31, 2020, balances.

b. Record the January transactions in a sales journal, a purchases journal, a cash receipts journal, a cash payments journal, and a general journal, as illustrated in this appendix.

c. Post the appropriate amounts to the subsidiary and general ledger accounts.

d. Prepare a trial balance at January 31, 2021.

e. Determine whether the subsidiary ledgers agree with control accounts in the general ledger.

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PERRAULT MUSIC CO. Post-Closing Trial Balance December 31, 2020 Debit Credit $ 17,900 38,000 101 Cash 112 Accounts receivable 115 Notes receivable 45,000 120 Merchandise inventory 22,600 140 Land 25,000 145 Building 146 Accumulated depreciation-building 157 Equipment 158 Accumulated depreciation-equipment 200 Notes payable 201 Accounts payable 275 Mortgage payable 301 M. Perrault, capital 310 M. Perrault, drawings 75,000 $ 38,800 6,450 1,950 34,200 67,400 87,600 401 Sales 410 Sales returns and allowances 505 Cost of goods sold 725 Salaries expense $229,950 $229,950