Johnson 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 Johnson are indicated in the working papers. Presented below are a series of transactions for Johnson Co. for the month of January. Note: post all entries to Accounts Receivable & Accounts Payable subsidiary ledger on a daily basis. Credit sales terms are 1/10, n/30. The cost of all merchandise sold is 65% of the sales price.

January

2 Purchase merchandise from S. Brown $3,000 and D. Green$1,100, terms n/30.

3 Sell merchandise on account to B. Jones $4,500, invoice no. 110, and to J. Smith $1,500, invoice no. 111.

4 Send checks to S. Franks for $7,500 less 2% cash discount, and to D. George for $9,000 less 1% cash discount.

5 Pay freight on merchandise purchased $200.

8 Summary of daily cash sales for week ending January 5^th, $17,500

9 Sell merchandise on account to R. Sims $1,500, invoice no. 112 and to S. White $1,000, invoice no. 113.

10 Issue credit of $200 to J. Smith for merchandise returned from sale of Jan 3.

10 Receive payment, in full, from B Jones and J. Smith less cash discounts.

11 Mr. Coyote, owner of Acme Co. withdrew $500 cash for his personal use.

12 Pay rent of $1,200 for March

15 Summary of daily cash sales for week ending March 12 $20,000

15 Purchased merchandise from D. George $12,000, terms 1/10, n/30, S. Franks $14,100, terms 2/10, n/30, and S. Brown $1,500, terms n/30.

16 Pay $450 cash for office supplies.

17 Return $500 of merchandise to S. Franks for credit.

18 Issue $19,000 10% 3 month note to R. Runner in payment of balance due.

21 Summary of daily cash sales for week ending March 18^th, $25,300

21 Receive payment in full from S White less cash discount due.

22 Send checks to D. George and S. Brown in full payment less cash discounts.

23 Sell merchandise on account to B. Little $2,500, invoice no 114 and to J. Sims $5,000, invoice no. 115.

24 Purchase merchandise from D. Green $5,200, terms n/30, and S. Brown $5,400, terms n/30.

24 Pay S. Franks in full less discount.

25 Pay $100 cash for office supplies.

28 Summary of daily cash sales for week ending January 25^th $18,200.

29 Pay utilities for January $117

30 Pay salaries $4,800 and office salaries $3,500

Instructions

(a)	Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payments journal, and a two-column general journal in chronological order. (Post to the Accounts Receivable & Accounts Payable Journal daily)
(b)	Total all journals except the General Journal and post the journals to the general ledger.

Once posing is complete, prepare a trial balance at January 31, 2014, in the trial balance columns of the worksheet. Complete the worksheet by adjusting the accounts using the following additional information. (Ref: page 240)

1. Office supplies at January 31 total $900. 2. Insurance coverage expires on October 31, 2014. 3. Annual depreciation on the equipment is $1,500. 4. Interest of $50 has accrued on the note payable. Complete the worksheet

(d)

Prepare a multiple-step income statement (Ref: page 235) and an owner's equity statement (Ref: page 166) for January and a classified balance sheet (Ref: page 178) at the end of January.

(e)	Prepare (in the general journal) and post (to the general ledger) adjusting and closing entries.(Ref: page 116, 118, 170 & 174).
(f)	Prepare a post-closing trial balance (Ref: page 172), and determine whether the subsidiary ledgers agree with the control accounts in the general ledger. (Ref: page 342 & 347)

Check Figures:

Sales Journal-Total A/ & Sales $16,000

Purchases Journal-Total Inventory & A/P $42,300

Cash Payments Journal-Cash $56,835

Cash Receipts Journal-Cash $93,242

Worksheet-Net Income $23,280