Financial Accounting: CP7-30 Daniels Consulting performs systems consulting (Special Journals)

Financial Accounting

CP7-30 Using all journals
This problem continues the Daniels Consulting situation.
Daniels Consulting performs systems consulting. Daniels has also begun selling accounting software and uses the perpetual inventory system to account for software inventory. During January 2017, Daniels completed the following transactions:
Jan 2. Completed a consulting engagement and received cash of $5,700.
Jan 2. Prepaid three months office rent, $2,400.
Jan 7. Purchased 50 units software inventory on account from Miller Co., $1,050, plus freight in, $50.
Jan 18. Sold 40 software units on account to Jason Needle, $2,625 (cost, $880).
Jan 19. Consulted with a client, Louis Frank, for a fee of $2,500 on account. (Use general journal.)
Jan 20. Paid employee salaries, $1,885, which includes accrued salaries from December of $685.
Jan 21. Paid Miller Co. on account, $1,100. There was no discount.
Jan 21. Purchased 185 units software inventory on account from Whitestone Co., $4,810.
Jan 24. Received bill and paid utilities, $375.
Jan 28. Sold 135 units software for cash, $5,265 (cost, $3,470).
Jan 31. Recorded the following adjusting entries:
a. Accrued salaries expense, $775
b. Depreciation on Equipment, $60; Depreciation on Furniture, $50
c. Expiration of prepaid rent, $800
d. Physical count of software inventory, 50 units, $1,300

Daniels Consulting had the following selected accounts with account numbers and normal balances:
Number Account Balances
111 Cash 17,950
112 Accounts Receivable 3,600
114 Software Inventory -
116 Office Supplies 300
117 Prepaid Rent -
170 Equipment 3,600
171 Accumulated Depreciation - Equipment 60
180 Furniture 3,000
181 Accumulated Depreciation - Furniture 50
211 Accounts Payable 3,600
212 Unearned Revenue 1,800
213 Salaries Payable 685
311 Common Stock 20,000
314 Retained Earnings 2,255
411 Sales Revenue -
412 Sales Discounts -
419 Service Revenue -
511 Cost of Goods Sold -
531 Salaries Expense -
541 Utilities Expense -
551 Depreciation Expense -Equipment -
561 Depreciation Expense -Furniture -
571 Rent Expense -

Requirement:
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal, a purchases journal, a cash payments journal (omit the Check No. column), and a general journal.
2. Total each column of the special journals. Show that total debits equal total credits in each special journal.
3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.
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