Question

ACR7 (Perpetual Method) 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 are indicated in the working papers presented below. Also below are a series of transactions for Jeter Co for the month of January Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price GENERAL LEDGER Account January 1 Number Account Title 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 2000 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 Schedule of Accounts Payable (from accounts receivable subsidiary ledger) (from accounts payable subsidiary ledger) January 1 January 1 Opening Opening Customer Balance Creditor Balance R. Beltre $1,500 S. Meek $ 9.000 B. Santos 7,500 R Moses 15,000 S. Mahay 4,000 D. Saito 11,000 I

Answer 1

(a)

Cash Receipts Journal CR1 Cost of Goods Sold Dr. Inventory Cr. Ref. Cr. Account Credited S. Mahay B. Santos 9,300 Date Jan. 7 7 10 13 13 20 21 31 B. Corpas J. Revere Sales Accounts Sales Other Cash Discounts Receivable Revenue Accounts Dr. Dr. Cr. Cr. 4,000 4,000 2,000 2,000 15,500 15,500 3,528 72 3,600 1,470 30 1,500 20,100 20,100 882 18 900 21,300 21,300 68,780 120 12,000 56,900 (101) (414) (112) (401) 12,060 S. Mahay 12,780 34,140 (505)(120) CP1 Inventory Cr. Cash Cr. Date Jan. 8 9 9 12 15 17 23 23 28 31 Account Debited Inventory S. Meek D. Saito Rent Expense Owner's Drawings Cash Payments Journal Other Accounts Accounts Payable Supplies Ref. Dr. Dr. Dr. 120 235 9,000 11,000 729 1,000 306 800 400 15,000 14,000 200 180 110 235 8,820 10,890 1,000 800 400 14,850 13,720 200 D. Saito S. Meek 150 280 Salaries and Wages Expense 627 8.100 10.135 (X) 49.000 (201) 600 (125) 720 (120) 8.100 59.015 (101)

G1 Credit Date Jan. 9 Ref. 412 Debit 300 General Journal Account Titles and Explanations Sales Returns and Allowances.... Accounts Receivable- J. Revere........ (Issued credit for merchandise returned) 1121 300 120 180 Inventory .......... ($300 X.60) Cost of Goods Sold ......... 505 180 18 200 2011 120 200 Accounts PayableS. Meek... Inventory .......... (Received credit for returned goods) 21 15,000 Accounts Payable R. Moses.......... Notes Payable........... (Payment of balance due) 2011 200 15,000 Adjusting Entries 31 700 Supplies Expense Supplies .... 728 125 700 31 200 Insurance Expense.. Prepaid Insurance 722 130 200 31 711 125 Depreciation Expense ($1,500 - 12)........ Accumulated Depreciation- Equipment...... 158 125 31 50 718 230 50 Interest Expense. Interest Payable ..... Closing Entries Sales Revenue.... Income Summary 31 401 350 79,400 79,400

  General Journal   G1

Date		Account Titles and Explanations		Ref.		Debit		Credit
Jan. 31		Income Summary............................. Sales Discounts...................... Sales Returns and   Allowances.......................... Cost of Goods Sold................. Rent Expense.......................... Salaries and Wages Expense................................ Supplies Expense................... Insurance Expense................. Depreciation Expense............ Interest Expense.....................		350 414 412 505 729 627 728 722 711 718		58,055		120    300 47,460  1,000  8,100    700    200    125     50
31		Income Summary............................. Owner’s Capital.......................		350 301		21,345		21,345
31		Owner’s Capital................................. Owner’s Drawings...................		301 306		800		800