Raymond Company: Record the January transactions in the appropriate journal-sales, purchases, cash receipts, cash payments, and general.

Comprehensive Problem: Chapters 3 to 7

Raymond Company has the following opening account balances in its general and subsidiary ledgers on January 1 and uses the periodic inventory system. All accounts have normal debit and credit balances.

Jan. 3 Sell merchandise on credit to B. Soto $3,100, invoice no. 510, and J. Ebel $1,800, invoice no. 511.
5 Purchase merchandise from S. Welz $3,000 and D. Laux $2,700.
7 Receive checks for $4,000 from S. Kysely and $2,000 from B. Jacovetti.
8 Pay freight on merchandise purchased $180.
9 Send checks to S. Liazuk for $9,000 and D. Nguyen for $11,000.
9 Issue credit memo for $300 to J. Ebel for merchandise returned.
10 Summary cash sales total $15,500.
11 Sell merchandise on credit to R. Draves for $1,900, invoice no. 512, and to S. Kysely $900, invoice no. 513.
Post all entries to the subsidiary ledgers.
12 Pay rent of $1,000 for January.
13 Receive payment in full from B. Soto and J. Ebel.
15 Withdraw $800 cash by I. Raymond for personal use.
16 Purchase merchandise from D. Nguyen for $15,000, from S. Liazuk for $13,900, and from S. Welz for $1,500.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to S. Liazuk and receive credit.
20 Summary cash sales total $17,500.
21 Issue $15,000 note to R. Mikush in payment of balance due.
21 Receive payment in full from S. Kysely.
Post all entries to the subsidiary ledgers.
22 Sell merchandise on credit to B. Soto for $1,700, invoice no. 514, and to R. Draves for $800, invoice no. 515.
23 Send checks to D. Nguyen and S. Liazuk in full payment.
25 Sell merchandise on credit to B. Jacovetti for $3,500, invoice no. 516, and to J. Ebel for $6,100, invoice no. 517.
27 Purchase merchandise from D. Nguyen for $14,500, from D. Laux for $1,200, and from S. Welz for $2,800.
28 Pay $200 cash for office supplies.
31 Summary cash sales total $19,920.
31 Pay sales salaries of $4,300 and office salaries of $2,600.

Instructions
a. Record the January transactions in the appropriate journal-sales, purchases, cash receipts, cash payments, and general.
b. Post the journals to the general and subsidiary ledgers. New accounts should be added and numbered in an orderly fashion as needed.
c. Prepare a trial balance at January 31, 2005, using a work sheet. Complete the work sheet using the following additional information.

1. Office supplies at January 31 total $700.
2. Insurance coverage expires on October 31, 2005.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $30 has accrued on the note payable.
5. Merchandise inventory at January 31 is $16,000.
d. Prepare a multiple-step income statement and a statement of owner's equity for January and a classified balance sheet at the end of January.
e. Prepare and post the 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.