CP7-1 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receciv- able...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
CP7-1 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receciv- 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 January 1 Opening Balance $35,750 Account Number Account Title 101 Cash 112 115 Accounts Receivable Notes Receivable 13,000 39,000 18,000 1,000 Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable 120 126 130 2,000 6,450 157 158 201 1,500 35,000 301 Owner's Capital 78,700 Comprehensive Problems: Chapters 3 to 7 349 Schedule of Accounts Receivable Schedule of Accounts Payable (from accounts receivable subsidiary ledger) (from accounts payable subsidiary ledger) January 1 Opening Balance January 1 Opening Balance Creditor S. Meek Customer R. Beltre B. Santos S. Mahay $1,500 $ 9,000 15,000 11,000 7,500 R. Moses 4,000 D. Saito Jan. 3 Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,800, invoice no. 511. 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 I to January 10 total $15,500. Make one joumal entry for these sales. Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay $900, 5 6. 9 11 invoice no. 513. 12 Pay rent of $1,000 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Jeter for personal use. 15 Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; S. Meek $14,200, terms 16 2/10, n/30; and S. Gamel $1,500, terms n/30. 17 Pay $400 cash for office supplies. Return $200 of merchandise to S. Mcek and receive credit. 20 Daily cash sales from January 11 to January 20 total $20,100. Make one journal entry for these sales. 18 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due. 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, 21 invoice no. 515. 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,500, invoice no. 516, and to J. Revere $6,100, invoice no. 517. 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 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Daily cash sales from January 21 to January 31 total $21,300. Make one journal entry for these sales. 27 31 Pay sales salaries $4,300 and office salaries $3,800. in70 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 llustration 7-16, and a two-column general journal. (b) Post the journals to the general ledger. (e) 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. () Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger. CP7-1 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receciv- 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 January 1 Opening Balance $35,750 Account Number Account Title 101 Cash 112 115 Accounts Receivable Notes Receivable 13,000 39,000 18,000 1,000 Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable 120 126 130 2,000 6,450 157 158 201 1,500 35,000 301 Owner's Capital 78,700 Comprehensive Problems: Chapters 3 to 7 349 Schedule of Accounts Receivable Schedule of Accounts Payable (from accounts receivable subsidiary ledger) (from accounts payable subsidiary ledger) January 1 Opening Balance January 1 Opening Balance Creditor S. Meek Customer R. Beltre B. Santos S. Mahay $1,500 $ 9,000 15,000 11,000 7,500 R. Moses 4,000 D. Saito Jan. 3 Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,800, invoice no. 511. 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 I to January 10 total $15,500. Make one joumal entry for these sales. Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay $900, 5 6. 9 11 invoice no. 513. 12 Pay rent of $1,000 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Jeter for personal use. 15 Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; S. Meek $14,200, terms 16 2/10, n/30; and S. Gamel $1,500, terms n/30. 17 Pay $400 cash for office supplies. Return $200 of merchandise to S. Mcek and receive credit. 20 Daily cash sales from January 11 to January 20 total $20,100. Make one journal entry for these sales. 18 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due. 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, 21 invoice no. 515. 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,500, invoice no. 516, and to J. Revere $6,100, invoice no. 517. 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 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Daily cash sales from January 21 to January 31 total $21,300. Make one journal entry for these sales. 27 31 Pay sales salaries $4,300 and office salaries $3,800. in70 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 llustration 7-16, and a two-column general journal. (b) Post the journals to the general ledger. (e) 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. () Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
Expert Answer:
Related Book For
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
Students also viewed these accounting questions
-
Jeter Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Jeter...
-
Jeter Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Jeter...
-
Koto Merchants uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for...
-
1. If an industry is formed by six companies. Four companies have sales of $ 10 each, and two companies have sales of $ 5 each. a. What is the concentration ratio of four companies for this industry?...
-
Illustrate the concepts of the dividend trap and negative equity.
-
6. Complete the table below. Include all steps needed when simplifying. Multiply the radical. Expand the expression and simplify. Expand and simplify. 6.8 52(6-23) (4-2)(6+3) Write the expression in...
-
The value(s) closed during compression stroke of an I.C. engine is/are (a) Inlet (b) Exhaust (c) Both inlet and exhaust (d) none of the above
-
The trial balance of Geronimo Company, shown on the next page, does not balance. Your review of the ledger reveals the following:(a) Each account had a normal balance.(b) The debit footings in...
-
What is the study of abnormal psychology? What are your overall thoughts on the study of abnormal psychology? 2. Explain 1-2 concepts, terms, or statistics that resonated. 3. How can you use the...
-
Cesar Ablang is a product manager for a Malaysian firm. His product is made in batches of 2,500 units each. In past years, his product cost was $14.50 per unit, including $8 in variable costs. The...
-
Use the dataset given at the end of the homework to answer the following questions. a) Construct a stem-and-leaf plot for that sample. (5 pts) b) Find the sample median, Q1, Q3, and IQR. Show work...
-
Consult a recent news article about a companys executive pay. Summarize the main issues detailed within the article.
-
What is the New York Stock Exchange (NYSE)?
-
What is a firms enterprise value, and what does it measure?
-
What is the diluted earnings per share?
-
What is the balance sheet identity?
-
find the exact values of the six trigonometric functions of the angle shown in the figure. (Use the Pythagorean Theorem to find the third side of the triangle.) 7. 41 e 8. 13 S 9. 15 8 10. 18 12...
-
What is a make-or-buy decision?
-
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred....
-
At the end of Dayton Department Stores fiscal year on November 30, 2014, these accounts appeared in its adjusted trial balance. Freight-In ................$ 7,500 Inventory ................ 40,000...
-
PepsiCo, Inc.s financial statements are presented in Appendix B. Financial statements of The Coca-Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual...
-
Analyze the following solutions to the problem of Social Security. a. The retirement age is increased to 70. b. The FICA tax is increased. c. Income plus Social Security payments cannot exceed the...
-
Oregon proposed a solution to the health care costs problem that was widely criticized. Under this solution, the state paid only for common medical problems. Special and expensive problems would not...
-
Why is a third-party payer a problem? Private insurance companies are third-party payers, and yet they want to maximize profit. So wouldnt they ensure that the allocation of dollars was efficient?
Study smarter with the SolutionInn App