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Assume it is Monday, May 1, the first business day of the month, and you have just been hired as the accountant for Colo Company which operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. During your first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 2/10, n/30 unless stated differentlys: May. 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent for $3,710. Charge $2,968 to Rent Expense-Selling Space, and charge $742 to Rent Expense-Office Space. (Use two lines to record the transaction.) 2 (a) Sold merchandise on credit to Hensel Company. Invoice No. 8785, for $6,100 (cost is $4,100). 2 (b) Issued an allowance (price reduction) of $175 to Knox Co. for merchandise sold on April 28. The total selling price (gross) was $4,725. Issued a refund of $798 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies, $574; and office supplies, $83. Invoice dated May 4, terms n/10 EOM. Received payment from Knox Co. for the balance from the April 28 (54,550) sale less the May 2 return and the $91 discount. Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and the $126 discount. Sold store supplies (noninventory) to the merchant next door at their cost of $350 cash. 10 Purchased $4,074 of office equipment on credit from Gear Supply Co., terms n/10 EOM. 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $122. 11 (b) Purchased $8,800 of merchandise fron Garcia, Inc., terms 2/10, n/30. Received a $854 price reduction fron Gear Supply Co. for the return of office equipment received on May 10. Colo debited accounts payable by that amount. 15 (a) Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. 15 (b) Cash sales for the first half of the month are $59, 220 (cost is $38,200). These cash sales are recorded in the cash receipts journal on May 15. 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890). Purchased $13,650 of merchandise from Fink Corp., terms 2/10, n/60. Issued Check No. 3413 to Garcia, Inc., in payment of its May 11 purchase less the discount of $176. 22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4.990), terns 2/10, n/60. Issued Check No. 3414 to Fink Corp. in payment of its May 17 purchase less the discount of $273. 12 16 19 $91 discount. Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and the $126 discount. Sold store supplies (non inventory) to the merchant next door at their cost of $350 cash. 10 Purchased $4,074 of office equipment on credit from Gear Supply Co., terns n/10 EOM. 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $122. 11 (b) Purchased $8,800 of merchandise from Garcia, Inc., terms 2/10, n/30. 12 Received a $854 price reduction from Gear Supply Co. for the return of office equipnent received on May 10. Colo debited accounts payable by that amount. 15 (a) Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. 15 (b) Cash sales for the first half of the month are $59,220 (cost is $38,200). These cash sales are recorded in the cash receipts journal on May 15. 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Sold merchandise on credit to Hensel Company. Invoice No. 8786, for $3,990 (cost is $1,890). Purchased $13,650 of merchandise from Fink Corp., terms 2/10, n/60. Issued Check No. 3413 to Garcia, Inc., in payment of its May 11 purchase less the discount of $176. 22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4.990), terms 2/10, n/60. Issued Check No. 3414 to Fink Corp. in payment of its May 17 purchase less the discount of $273. Purchased the following on credit from Gear Supply Co.: merchandise, $8,120; store supplies, 5630; and office supplies, $280. Terms n/10 EOM. 25 Purchased $3,080 of merchandise from Peyton Products, terms 2/10, n/30. 26 (a) Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230). 26 (b) Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283. 29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use. 38 (a) Received paynent from Lee Services for the May 22 sale less the discount of $137. 30 (b) Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. 31 (a) Cash sales for the last half of the month are $66,652 (cost is $42,500). These cash sales are recorded in the cash receipts journal on May 31. 31 (b) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month-end postings. 23 24 Assume a perpetual inventory system. 2-a. Complete the work sheet using the following information for accounting adjustments. Prepare and post adjusting and closing entries. a. Expired insurance, $553. b. Ending store supplies inventory. $2,632. c. Ending office supplies inventory. $504. d. Depreciation of store equipment. $567 e. Depreciation of office equipment, $329. 2.b. Prepare all necessary ledgers for accounting adjustments 2-c. Prepare a work sheet for the month ended May 31. 3-a. Prepare a May multiple-step income statement. 3-b. Prepare a May statement of owner's equity. 3-c. Prepare a May 31 classified balance sheet. 4-a. Prepare a post-closing trial balance. 4-b1. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable. 4-b2. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts payable. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Reg 2C Req 3A Reg 3B Req3C Req 4A Req 481 Reg 432 Prepare and post adjusting and closing entries. View transaction list Journal entry worksheet Complete this question by entering your answers in the tabs below. Req 2A Req 2B Reg 2C Reg 3A Req3B Reg 3C Reg 4A Req 41 Req 4B2 Req 2A Prepare anu post adjusting and closing entries. View transaction list Journal entry worksheet 2 3 4 Record the expired insurance, $55 Note: Enter debits before credits Date May 31 1 General Journal Req 2A Req 2B Reg 2C Reg 3A Req 3B Req 3C Req 4A repare and post adjusting and closing entries. View transaction list Journal entry worksheet 3 4 5 6 7 8 9 Record the ending store supplies inventory, $2,632. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record entry Clear entry View general journa View transaction list Journal entry worksheet Req 2A Req 2B Reg 2C Reg 3A Reg 38 Reg 3C Req 4A Req 481 Req 482 Prepare a work sheet for the month ended May 31. COLO COMPANY Work Sheet for Month Ended May 31 Unadjusted Trial Balance Adjustments Income Statement Balance Sheet or Statement of Owner's Equity Debit Credit Account Title Debit Credit Debit Credit Debit Credit Cash Accounts receivable Merchandise inventory Office supplies Store supplies Prepaid insurance Office equipment Accum depr.-Office equipment Store equipment Accum. depr.- Store equipment Accounts payable Jenny Colo, Capital Jenny Colo, Withdrawals Sales Sales discounts Sales returns and allowances / / / / AAN / / 7 A A Store equipment Accum, depr. - Store equipment Accounts payable Jenny Colo, Capital Jenny Colo, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depr. Expense-Office equipment Dopr. Expense-Store equipment Office salaries expense se Sales salaries expense Insurance expense Rent expense, office space Rent expense, selling space Office supplies expense Store supplies expense Utilities expense Totals Net income Totals VILL [ TO $ 0 $0 O 0 $ 0 $ 0 $ 0 Prepare a May multiple-step income statement. COLO COMPANY Income Statement For Month Ended May 31 Revenues Net sales Operating expenses Selling expenses 1 BER 1 0 I Total selling expenses General and administrative BE 333333333 3 BIEBER 33 Homework Required i Saved Total selling expenses General and administrative expenses 1 TT Total general and administrative expenses Total operating expenses Req 2c Req 3B > Complete lis queSLIUI DY llelliy yuui aliswers I Lie Laus Deuw. Reg 2A Req 2B Req 2C Reg 3A Req 3B Req 3C A Req 4A Reg 431 Prepare a May statement of owner's equity. COLO COMPANY Statement of Owner's Equity For Month Ended May 31 Prepare a May 31 classified balance sheet. COLO COMPANY Balance Sheet May 31 Assets Current assets: Total current assets Plant assets Total plant assets Total assets OOO Liabilities Current liabilities: DAN Total current assets Plant assets Total plant assets Total assets IOIO Liabilities Current liabilities: Total liabilities $ 0 Equity Total liabilities and equity Prepare a post-closing trial balance. COLO COMPANY Post-Closing Trial Balance May 31 Debit Credit SO CS SH Totals $ 0 $ Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Req 2c Req Req 3B Req 3C Reg 4A Req 481 Prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable. COLO COMPANY Schedule of Accounts Receivable May 31 Crane Corp. Hensel Company Knox, Inc. Lee Services Total accounts receivable $ Complete this question by entering your answers in the tabs below. Req 2A Req 2B Reg 2C Reg 3A Reg 3B Req 3C Req 4A Req 481 Rec 4B2 Prove the accuracy of subsidiary ledgers by preparing schedules of accounts payable. COLO COMPANY Schedule of Accounts Payable May 31 Peyton Products Gear Supply Co. Fink Corp Garcia, Inc. Total accounts payable ( Req 481 Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases journal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Complete this question by entering your answers in the tabs below. Reg A Req 1B Req 1C Enter the transactions in a sales journal. SALES JOURNAL Date Account Debited Invoice Number May 02 May 16 May 22 May 26 Hensel Company Hensel Company Lee services Crane Corp (8785 18786 8787 Accounts Cost of Goods Receivable Dr. Sold Dr. S ales Inventory Cr. $ 6,100 $ 3 ,990 6,850 14,2101 11 S1989191 May 31 Totals 18 Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases journal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Complete this question by entering your answers in the tabs below. Req1A Req 1B Req1C Reg 1D Req 1E Date of Enter the transactions in a purchases journal. ins in a purchases journal PURCHASES JOURNAL Date of Date Account Terms Invoice May 04 Store supplies/Gear Supply 5/4 1/10, EOM May 10 office equipment/Gear Supply 5/10 /10, EOM May 11 Garcia, Inc. 5/112 /10, 1/30 May 17 Fink Corp. 5/17 2 /10, 1/60 May 24 Store supplies/Gear Supply n/10, EOM May 25 Peyton products 2/10, 130 Other Accounts Dr Office Supplies Dr. $ 574 4,074 Accounts Inventory Payable Cr. Dr. $ 37,0727 $ 36,415 4,074 8,800 8,800 13,650 13,650 8,120 7,2101 3,080 3,080 280 630 / May 31 Totals $ 74,796 $ 69,155 $ 363 $ 5,278 Required: 1-a. Enter the transactions in a sales journal. 1.b. Enter the transactions in a purchases journal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg C Reg 1D Req 1E Enter the transactions in a cash receipts journal. CASH RECEIPTS JOURNAL Date Other & Cash Dr. Account Credited Sales Accounts Discount Receivable Dr. Cr. sales Cr. Cost of Goods Sold Dr. Accts. Cr. Inventory Cr. $ 91 5 4,550 350 1221 6,100 May 05 May 09 May 11 May 15 May 30 May 31 Knox, Inc. Store supplies/Gear Supply Hensel Company Sales Lee services Sales 4,459s 350 5,9787 59,2201 6.7131 66,052 11 INI I. . 6,850 - May 31 Totals $ 142,772 S 17,500 $ 125,272 $ 350 $ Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 1D Reg 1E Enter the transactions in a cash payments journal. (Enter the transactions in chronological order.) CASH PAYMENTS JOURNAL Payee Account Debited Cash Cr. Inventory Cr. Accounts Payable Dr. Other Accounts Dr. $ 2,968 742 May 01 3410 S&P Mgmt. Co R 3,710 6,972| 126 7,098 May 08 May 15 3411 3412 Peyton products Payroll 5,320 3.150 8,4701 8,624 1761 ent exp. -Selling space Rent exp. - Office space Peyton products Sales salaries expense Office salaries expense Garcia, Inc. Fink Corp. Utilities expense J. Colo, Withdrawals Sales salaries expense office salaries expense 8,800 13,650 May 19 May 23 May 26 May 29 May 30 273 3413 3414 3415 3416 3417 Garcia, Inc. Fink Corp. Perennial power Jenny Colo Payroll 13,377 1,283 7,000 1,2831 7,000 5,320 3,150 28,933 8.470 May 31 Totals $ 57,906 S 575 $ $ 29,548 Assume it is Monday, May 1, the first business day of the month, and you have just been hired as the accountant for Colo Company. which operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. During your first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 2/10, n/30 unless stated differently May. 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent for $3,710. Charge $2,968 to Rent Issued Check No 2410 Expense-Selling Space, and charge $742 to Rent Expense-Office Space. (Use two lines to record the transaction.) 2 (a) Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100). 2 (b) Issued an allowance (price reduction) of $175 to Knox Co. for merchandise sold on April 28. The total selling price (gross) was $4,725. Issued a refund of $798 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. Purchased the following on credit fron Gear Supply Co.: merchandise, $37,072; store supplies, $574; and office supplies, $83. Invoice dated May 4, terms n/10 EOM. Received payment from Knox Co. for the balance from the April 28 ($4,550) sale less the May 2 return and the $91 discount. Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and the $126 discount. Sold store supplies (noninventory) to the merchant next door at their cost of $350 cash. 10 Purchased $4,074 of office equipment on credit from Gear Supply Co.terms n/10 EOM. 11 (a) Received payment fron Hensel Company for the May 2 sale less the discount of $122. 11 (b) Purchased $8,800 of merchandise from Garcia, Inc., terms 2/10, n/30. 12 Received a $854 price reduction from Gear Supply Co. for the return of office equipment received on May 10. Colo debited accounts payable by that amount. 15 (a) Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, 53.150. 15 (b) Cash sales for the first half of the month are $59,220 (cost is $38,200). These cash sales are recorded in the cash receipts journal on May 15. 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890). Purchased $13,650 of merchandise from Fink Corp., terms 2/10, 1/60 19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 11 purchase less the discount of $176. Sold nerchandise to Lee Services, Invoice No. 3787, for $6,850 (cost is $4,990), terns 2/10, n/60. Issued Check No. 3414 to Fink Corp. in payment of its May 17 purchase less the discount of $273. 16 >3,150. 15 (b) Cash sales for the first half of the month are $59,220 (cost is $38,200). These cash sales are recorded in the cash receipts journal on May 15. 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890). Purchased $13,650 of merchandise from Fink Corp., terms 2/10, n/60. 19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 11 purchase ess the discount of $176. Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 2/10, 1/60. Issued Check No. 3414 to Fink Corp. in payment of its May 17 purchase less the discount of $273. 24 Purchased the following on credit from Gear Supply Co.: merchandise, $8,120; store supplies, $630; and office supplies, $280. Terms n/10 EOM. Purchased $3,080 of merchandise from Peyton Products, terms 2/10, n/30. 26 (a) Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,21e (cost is $8,230). 26 (b) Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283. The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use. 30 (a) Received payment from Lee Services for the May 22 sale less the discount of $137. 30 (b) Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. 31 (a) Cash sales for the last half of the month are $66,652 (cost is $42,500). These cash sales are recorded in the cash receipts journal on May 31. 31 (b) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month-end postings. 25 29 Assume a perpetual inventory system, Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases journal, 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Complete the a ction oints Book References 2-a. Complete the work sheet using the following information for accounting adjustments. Prepare and post adjusting and closing entries. a. Expired insurance, $553. b. Ending store supplies inventory, $2,632 c. Ending office supplies inventory, $504 d. Depreciation of store equipment, $567 e. Depreciation of office equipment, $329 2.b. Prepare all necessary ledgers for accounting adjustments 2-c. Prepare a work sheet for the month ended May 31. 3-a. Prepare a May multiple-step income statement. 3-b. Prepare a May statement of owner's equity. 3-c. Prepare a May 31 classified balance sheet. 4-a. Prepare a post-closing trial balance. 4-b1. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable. 4-b2. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts payable. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Reg 2C Reg 3A Reg 38 Reg 3C Reg 4A Req 401 Req 462 Prepare a May multiple-step income statement. COLO COMPANY Income Statement For Month Ended May 31

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