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May 1 - Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $4,000. (Use two lines to record the transaction. Charge 80% of the rent to Rent Expense Selling Space and the balance to Rent Expense Office Space.)

May 2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100)

May 2 - Issued a $175 credit memorandum to Knox Co. for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725.

May 3 Received a $798 credit memorandum from Peyton Products for the return of merchandise purchased on April 29.

May 4 Purchased the following on credit from Gear Supply Co. Invoice dated May 4, terms n/10 EOM.

May 5 Received payment from Knox Co., for the balance from the April 28 sale less the May 2 return and the discount

May 8 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 a 2% discount.

May 9 Sold store supplies to the merchant next door at their cost of $350 cash. (Hint what are we selling to the next door neighbor, it is not Merchandise Inventory and does not have a cost associated with it)

May 10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May 10,terms n/10 EOM.

May 11 Received payment from Hensel Company for the May 2 sale less the discount.

May 11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30.

May 12 Received an $854 credit memorandum from Gear Supply Co. for the return of defective office equipment received on May 10.

May 15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.

May 15 Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)

May 16 Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890)

May 17 Purchased $13,650 of merchandise from Fink Corp, invoice dated May 14, terms 2/10, n/60.

May 19 Issued Check No. 3413 to Garcia, Inc. in payment of its May 11 invoices less the discount.

May 22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 2/10, n/60.

May 23 Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoices less the discount.

May 24 Purchased the following on credit from Gear Supply Co. Invoice dated May 24, terms n/10 EOM.

May 25 Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 2/10, n/30.

May 26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230).

May 26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.

May 29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use.

May 30 Received payment from Lee Services for the May 22 sale less the discount.

May 30 Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees

May 31 Cash sales for the last half of the month are $66,052 (cost is $42,500)

REQUIRED:

Enter these transactions in the General Journal. Assume a perpetual inventory system.

Terms for all credit sales are 2/10, n/30 unless stated differently.

Using the work sheet / trial balance provided to you, complete using the following information for accounting adjustments.

A. Expired Insurance, $321.

B. Ending store supplies inventory, $692

C. Ending office supplies inventory, $225

D. Depreciation of store equipment, $499

E. Depreciation of office equipment, $758

Complete the work sheet to include the Income Statement and Balance Sheet/Statement of Owners Equity, and tie out the balances.

Prepare a May 20xx multiple-step income statement, a May 20xx statement of owners equity, and a May 31, 20xx, classified balance sheet.

Check figures: Net Income = $29,009

Total Assets = $382,053

Prepare a post-closing trial balance (be sure to include the closing entries)

Date..................................Account titles and Explanation....................................P.R...............Debit.........Credit

May	1	Rent expense - Selling Space					642	3200
		Rent expense - Office Space					641	800
		Cash					101		4,000
		Issued check to pay rent
May	2	Accounts receivable					106	6,100
		Sales					413		6,100
		To record sale on credit
May	2	Cost of goods sold					502	4,100
		Merchandise inventory					119		4,100
		Cost associated with sale
May	2	Sales returns & allowances					414	175
		Accounts receivable					106		175
		Defective products returned
May	3	Accounts payable					201	798
		Merchandise Inventory					119		798
		Return on merchandise
May	4	Merchandise inventory					119	37,072
		Store supplies					125	574
		Office supplies					124	83
		Accounts payable					201		37,729
		Purcahsed supplies on credit
May	5	Cash					101	4,459
		Sales discount					415	91
		Accounts receivable					106
		Received payment for April 28 sale							4,550
May	8	Accounts payable					201	6,300
		Merchandise inventory					119		126
		Cash					101		6,174
		Payment to Peyton Pro. Less the discount
May	9	Cash					101	350
		Store supplies					125		350
		Sold supplies
May	10	Office equipment						4,074
		Accounts Payable							4,074
		Purchased equipement on credit
May	11	Cash						5,978
		Sales discount						122
		Accounts receivable							6,100
		Received payment from Hensel Co. less discount
May	11	Merchandise inventory						8,800
		Accounts payable							8,800
		Purchased merchandise from Garcia, Inc
May	12	Accounts payable						854
		Office equipement							854
		Returned defective equipment
May	15	Sales salaraies						5,320
		Office salaries						3,150
		Cash							8,470
		Used check 3412 to pay employees
May	15	Cash						59,220
		Sales							59,220
		Sold merchandise for cash (first half)
May	15	Cost of goods sold						38,200
		Merchandise inventory							38,200
		To record costs of good sold (first half)
May	16	Accounts recievable						3,990
		Sales
		Sold goods to Hensel on credit
May	16	Costs of goods sold						1,890
		Merchandise inventory							1,890
		To record costs of goods sold
May	17	Merchandise inventory						13,650
		Accounts payable							13,650
		Purchased merch. from Fink Corp
May	19	Accounts payable						8,800
		Merchandise inventory							176
		Cash							8,624
		Paid outstanding bill less the discount
May	22	Accounts reveivable						6,850
		Sales							6,850
		Sold merch. to Lee Services
May	22	Cost of goods sold						4,990
		Merchandise inventory							4,990
		To record cost of goods sold
May	23	Accounts payable						13,650
		Merchandise inventory							273
		Cash							13,377
		Paid outstanding bill less the discount
May	24	Merchandise inventory						8,120
		Store supplies						630
		Office supplies						280
		Accounts payable							9,030
		Purchased items on credit
May	25	Merchandise inventory						3,080
		Accounts payable							3,080
		Purchased merch. from peyton prod.
May	26	Accounts receivable						14,210
		Sales							14,210
		Sold items on credit to Crane Corp
May	26	Cost of goods sold						8,230
		Merchandise inventory							8,230
		To record cost of goods sold
May	26	Utilities expense						1,283
		Cash							1,283
		Paid Perennial Power
May	29	Jenni Colo, Withdrawls						7,000
		Cash							7,000
		To record cash withdrawl, check 3416
May	30	Cash						6,713
		Sales discount						137
		Accounts recievable							6,850
		Received payment from Lee Services
May	30	Sales salaries expense						5,320
		Office salaries expense						3,150
		Cash							8,470
		Used check 3417 to pay employees
May	31	Cash						66,052
		Sales							66,052
		Sold merchandise for cash (last half)
May	31	Cost of goods sold						42,500
		Merchandise inventory							42,500
		To record cost of goods sold (Last half)
May	31	Insurance expense						321
		Prepaid insurance							321
		Insurance adjustment
May	31	Store supplies expense						692
		Store supplies							692
		Store supplies adjustment
May	31	Office supplies expense						225
		Office supplies							225
		Office supplies adjustment
May	31	Depreciation Expense - Store equip.						499
		Acc. Dep. - Store equip.							499
		Adjustment for Dep. on Store equip.
May	31	Depreciation Expense - Office equip.						758
		Acc. Dep. - Office equip.							758
		Adjustment for Dep. on Office equip.
May	31	Sales						125272
		Income summary							125272
		To close revenue
May	31	Income Summary						105418
		Cost of goods sold							80700
		Dep. Exp. - Office equip.							758
		Dep. Exp. - store equip.							499
		Office salaries exp.							6300
		Sales salaries exp.							10640
		Insurance exp.							321
		Rent exp. - Office space							800
		Rent exp. - Selling space							3200
		Office supplies exp.							225
		Store supplies exp.							692
		Utilities exp.							1283
		To close expenses
May	31	Income summary						29009
		Jenny Colo, Capital							29009
		To close income summary to capital
May	31	Jenny Colo, Capital						7000
		Jenny Colo, Withdralws							7000
		To close withdrawls

My numbers arent making sense... Can someone help me with where I went wrong?

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