The transactions completed by franklin company during january, its first month of operations, are listed below. assume that franklin company uses the following journals: cash receipts (cr), cash payments (cp), revenue (r), and purchases (p). assume that it uses accounts receivable and accounts payable subsidiary ledgers as well as a general ledger. indicate by letters which journal would be used for each transaction and whether or not the entry requires a posting to a subsidiary ledger.

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.