Jan. 2 Issued invoice no. 191 for sale on account to Wooten Design Ltd., $9,400 — Zwicky Sales Company which uses the perpetual inventory system and makes all

Zwicky Sales Company, which uses the perpetual inventory system and makes all credit sales with terms 1/10, n/30, had these transactions during January:

Jan. 2 Issued invoice no. 191 for sale on account to Wooten Design Ltd., $9,400.

Zwicky's cost of this inventory was $5,560. Credit sales terms are 1/10, n/30.

3 Purchased inventory on credit terms of 3/10, n/60 from Delwood Co., $23,600. The invoice was dated January 3.

4 Sold inventory for cash, $3,232 (cost, $2,040).

5 Issued cheque no. 473 to purchase furniture for cash, $4,348.

8 Collected interest revenue of $10,760.

9 Issued invoice no. 192 for sale on account to Piver Inc., $25,000 (cost, $13,200). Credit sales terms are 1/10, n/30.

10 Purchased inventory for cash, $3,104, issuing cheque no. 474.

12 Received $9,306 cash from Wooten Design Ltd. in full settlement of its account receivable.

13 Issued cheque no. 475 to pay Delwood Co. net amount owed from January 3.

13 Purchased supplies on account from Lehigh Corp., $5,756. Terms were net end of month. The invoice was dated January 13.

15 Sold inventory on account to Cradick Ltd., issuing invoice no. 193 for $2,972 (cost, $1,640). Credit sales terms are 1/10, n/30.

17 Issued credit memo to Cradick Ltd. for $2,972 for merchandise sent in error and returned to Zwicky by Cradick. Also accounted for receipt of the inventory.

18 Issued invoice no. 194 for credit sale to Wooten Design Ltd., $7,300 (cost, $3,880). Credit sales terms are 1/10, n/30.

19 Received $24,750 from Piver Inc. in full settlement of its account receivable from January 9.

20 Purchased inventory on credit terms of net 30 from Jasper Sales Ltd., $5,600. The invoice was dated January 19.

22 Purchased furniture on credit terms of 3/10, n/60 from Delwood Co., $13,100. The invoice was dated January 22.

22 Issued cheque no. 476 to pay for insurance coverage, debiting Prepaid Insurance for $5,380.

24 Sold supplies to an employee for cash of $1,344, which was the value of the supplies.

25 Issued cheque no. 477 to pay utilities, $4,552.

28 Purchased inventory on credit terms of 2/10, n/30 from Lehigh Corp., $1,684. The invoice was dated January 28.

29 Returned damaged inventory to Lehigh Corp., issuing a debit memo for $1,684.

29 Sold goods on account to Piver Inc., issuing invoice no. 195 for $5,268 (cost, $3,256). Credit sales terms are 1/10, n/30.

30 Issued cheque no. 478 to pay Lehigh Corp. on account from January 13.

31 Received cash in full on account from Wooten Design Ltd. for credit sale of January 18. There was no discount.

31 Issued cheque no. 479 to pay monthly salaries of $7,400.

Required

1. For Zwicky Sales Company, open the following three-column general ledger accounts using the account numbers given:

Cash .................................................... 111

Accounts Receivable ........................ 112

Supplies ............................................. 116

Prepaid Insurance ............................ 117

Inventory ........................................... 118

Furniture ............................................ 151

Accounts Payable ............................. 211

Sales Revenue ................................... 411

Sales Discounts ................................. 412

Sales Returns and Allowances ....... 413

Interest Revenue ............................... 419

Cost of Goods Sold ........................... 511

Salaries Expense ............................... 531

Utilities Expense ............................... 541

2. Open these accounts in the subsidiary ledgers: accounts receivable subsidiary ledger- Piver Inc., Cradick Ltd., and Wooten Design Ltd.; accounts payable subsidiary ledger- Delwood Co., Lehigh Corp., and Jasper Sales Ltd.

3. Enter the transactions in a sales journal (Page 8), a cash receipts journal (Page 3), a purchases journal (Page 6), a cash payments journal (Page 9), and a general journal (Page 4), as appropriate. Disregard PST and GST in this question.

4. Post daily to the accounts receivable subsidiary ledger and to the accounts payable subsidiary ledger. Post the individual amounts to the general ledger on the date recorded in the journal; post column totals to the general ledger on January 31.

5. Total each column of the special journals. Show that total debits equal total credits in each journal.

6. Balance or reconcile the accounts receivable subsidiary ledger and Accounts Receivable in the general ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the general ledger.