A. Record the January transactions in sales journal, a single column purchase journal, a cash reciepts journal, a cash payments journal, & a two column general journal

B. Post the journals to the general ledger

C. Prepare the trial balance at January 31, 2020, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information:

1. Office supplies at January 31 total $850

2. Insurance coverage expires on Oct. 31, 2020

3. Annual Depreciation on the equipment is $1,500

4. Interest of $50 has accrued on the note payable

D. Prepare a multistep income statement and a owners equity statement for January and a classified balance sheet at the end of January.

E. Prepare the 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 ledger

G. Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers:

1. Inventory Turnover

2. Days in Inventory

3. Gross Profit Rate

4. Working Capital

  

Transcribed Image Text:

Sun&Fun Company 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 the company are indicated in the working papers. Below are a series of transactions for Sun&Fun Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 56% of the sales price. Jan. 3 Sell merchandise on account to M. Knast $2,900, invoice no. 825, and to C. Ryder $1,800, invoice no. 826. 5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30. 7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $235. 9 Send checks to K. Xerxes for balance currently due less 2% cash discount, and to T. Caper for balance currently due less 1% cash discount. 9 Issue credit of $300 to C. Ryder for merchandise returned. 10 Summary daily cash sales total $15,500. I1 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Armold $900, invoice no. 828. 12 Pay rent of $1,000 for January. 13 Receive payment in full from M. Knast and C. Ryder less cash discounts. 15 Withdrawal of $800 cash by J. Sandy for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30. 17 Pay $400 cash for office supplies. 18 Return $450 of merchandise to K. Xerxes and receive credit. Sun&Fun Company 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 the company are indicated in the working papers. Below are a series of transactions for Sun&Fun Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 56% of the sales price. Jan. 3 Sell merchandise on account to M. Knast $2,900, invoice no. 825, and to C. Ryder $1,800, invoice no. 826. 5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30. 7 Receive checks from V. Arnold $4,000 and I. Tan $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased $235. 9 Send checks to K. Xerxes for balance currently due less 2% cash discount, and to T. Caper for balance currently due less 1% cash discount. 9 Issue credit of $300 to C. Ryder for merchandise returned. 10 Summary daily cash sales total $15,500. I1 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Armold $900, invoice no. 828. 12 Pay rent of $1,000 for January. 13 Receive payment in full from M. Knast and C. Ryder less cash discounts. 15 Withdrawal of $800 cash by J. Sandy for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, n/30; and R. Drifter $1,500, terms n/30. 17 Pay $400 cash for office supplies. 18 Return $450 of merchandise to K. Xerxes and receive credit.

Answer rating: 100% (QA)

b c Date Account Credited Jan 7 T Dudley 13 M Rensing 23 29 Notes R... View the full answer