COMPREHENSIVE PROBLEMS: CHAPTERS 3 TO 7 CP7-1 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receiv- able and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Jeter are indicated in the working papers presented below. Also following are a series of transactions for Jeter Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price. GENERAL LEDGER Account Number Account Title January 1 Opening Balance 101 Cash $35,750 112 Accounts Receivable 13,000 115 Notes Receivable 39,000 120 Inventory 18,000 126 Supplies 1,000 130 Prepaid Insurance 2,000 157 Equipment 6,450 158 Accumulated Depreciation-Equip. 1,500 201 Accounts Payable 35,000 301 Owner's Capital 78,700 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) Customer R. Beltre January 1 Opening Balance $1,500 Schedule of Accounts Payable (from accounts payable subsidiary ledger) Creditor S. Meek 7,500 4,000 R. Moses D. Saito January 1 Opening Balance $ 9,000 15,000 B. Santos S. Mahay 11,000 Jan. 3 Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,800, invoice no. 511. 5 7 8 9 196 Purchase merchandise from S. Gamel $5,000 and D. Posey $2,200, terms n/30. Receive checks from S. Mahay $4,000 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $235. Send checks to S. Meek for $9,000 less 2% cash discount, and to D. Saito for $11,000 less 1% cash discount. Issue credit of $300 to J. Revere for merchandise returned. 10 Daily cash sales from January 1 to January 10 total $15,500. Make one journal entry for these sales. Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay $900, invoice no. 513. 11 Receive payment in full from B. Corpas and J. Revere less cash discounts. Withdraw $800 cash by M. Jeter for personal use. 12 Pay rent of $1,000 for January. 13 15 15 16 Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; S. Meek $14,200, terms 2/10, n/30; and S. Gamel $1,500, terms n/30. 17 Pay $400 cash for office supplies. 18 Return $200 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $20,100. Make one journal entry for these sales. 21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due. 222 21 Receive payment in full from S. Mahay less cash discount. 22 Sell merchandise on account to B. Corpas $2,700, invoice no. 514, and to R. Beltre $2,300, invoice no. 515. 22 Post all entries to the subsidiary ledgers. 23 25 Send checks to D. Saito and S. Meek for full payment less cash discounts. Sell merchandise on account to B. Santos $3,500, invoice no. 516, and to J. Revere $6,100, invoice no. 517. 27 Purchase merchandise from D. Saito $14,500, terms 1/10, n/30; D. Posey $3,200, terms n/30; and S. Gamel $5,400, terms n/30. 27 3231 Post all entries to the subsidiary ledgers. Pay $200 cash for office supplies. Daily cash sales from January 21 to January 31 total $21,300. Make one journal entry for these sales. 31 Pay sales salaries $4,300 and office salaries $3,800. Instructions (a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal as shown in Illustration 7-9, a cash payments journal as shown in Illustration 7-16, and a two-column general journal. (b) Post the journals to the general ledger. (c) Prepare a trial balance at January 31, 2017, in the trial balance columns of the worksheet. Com- plete the worksheet using the following additional information. (1) Office supplies at January 31 total $900. (2) Insurance coverage expires on October 31, 2017. (3) Annual depreciation on the equipment is $1,500. (4) Interest of $50 has accrued on the note payable. (d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January. (e) Prepare and post adjusting and closing entries. (f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.