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>P 7C
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Journal
Debit 78 0
,100
Hensel Company √ , 90
√ √ 0
,210
Correct! COLO COMPANY Accounts PR Credit Debit Debit Debit /√
n/10, EOM /√
5/10 √ √ Store Supp./Gear Supp. n/10, EOM 5
/√ 2/10, n/30 √ COLO COMPANY Receipts Journal
Other COGS Sales Accts. Debit PR Debit Debit Credit Credit Credit Inv. Credit √ √ √ -15
√ √ 31 Totals COLO COMPANY Account Cash Inventory Accts. Debited PR Credit Credit Debit Debit Peyton Products Peyton Products √ Garcia, Inc. Garcia, Inc. √ Fink Corp. Fink Corp. √ Payroll Sales Salaries Exp. 621 Office Salaries Exp. 620 0 0 0 0 PR Debit Credit 414 -Knox, Inc.
/√
0 -Peyton Products
0 201/√ 163 0 Received a credit memo for returns. 1
0 Expense
0 0 0 Sales 413 Summary
0 415 0 0 612 0 613 0 620 0 621 0 641 0 642 0 650 0 690 0 31 Income Summary 901 0 302 0 COLO COMPANY PR Debit Credit Balance Date Item PR Debit Credit Balance Account No. 119 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance 31 G2 0 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance P2 Account No. 164 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Account No. 166 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance 31 P2 Date Item PR Debit Credit Balance 31 G2 0 Date Item PR Debit Credit Balance D2 31 G2 0 Date Item PR Debit Credit Balance 31 R2 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Account No. 612 Date Item PR Debit Credit Balance Account No. 613 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance D2 31 G2 0 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance 31 G2 0 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance D2 31 G2 0 Date Item PR Debit Credit Balance 31 G2 0 Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance Date Item PR Debit Credit Balance S2 May 2 G2 Date Item PR Debit Credit Balance COLO COMPANY Date Item PR Debit Credit Balance P2 Date Item PR Debit Credit Balance P2 Date Item PR Debit Credit Balance P2 May 3 G2 Date Item PR Debit Credit Balance 12 G2 COLO COMPANY Income Statement Totals 0 0 0 0 Totals COLO COMPANY For Month Ended May 31, 2011 Sales Sales discounts Sales salaries expense Store supplies expense Office salaries expense Office supplies expense 0 For Month Ended May 31, 2011 0 Cash 0 Office equipment 0 Store equipment 0 0 0 COLO COMPANY May 31, 2011 Cash Store equipment Accounts payable COLO COMPANY May 31, 2011 0 May 31, 2011 0 Enter appropriate data in yellow cells. Your entries for “Totals” will be verified. COLO COMPANY Check No. Terms 3410 Hensel Company 2/10, n/60 Knox Co. Apr. 28 Knox Co. Apr. 28 Peyton Products Apr. 29 Gear Supply Co. May 4 Gear Supply Co. May 4 n/10 EOM Gear Supply Co. May 4 n/10 EOM and return
Knox Co. Apr. 28 n/10 EOM Peyton Products Apr. 29 3411 ? Gear Supply Co. May 10 n/10 EOM Gear Supply Co. May 10 Payroll 3412 Payroll 3412 Hensel Company 8786 2/10, n/60 2/10, n/60 Garcia, Inc. May 10 ? Lee Services 8787 2/10, n/60 6,850 ? n/10 EOM Crane Corp. 8788 2/10, n/60 14,210 Perennial Power 3416 2
0
Student
Name
Clarence Thomas
Class:
AC
201
Problem 07C
COLO COMPANY
Sales
Acct’s Rcvble
COGS
Inv.
Debit
Date
Account
Debited
No.
PR
Sales
Credit
Inv. Credit
May 2
Hensel Company
8
5
√
6,
10
4
16
8786
3
9
1,890
22
Lee Services
8787
6,850
4,990
26
Crane Corp.
8788
14,210
8,2
30
31
Totals
31,
15
19
Correct!
Purchases Journal
Accounts
Office
Other
Inv.
Payable
Inventory
Supplies
Date Account Date
Terms
May 4
Store Supp./Gear Supp.
5/04
n/10, EOM
1
25
10
Off. Equip./Gear Supp.
5/10
163
11
Garcia, Inc.
2/10, n/30
17
Fink Corp.
5/14
2/10, n/60
24
5/24
12
25
Peyton Products
5/
23
31
Totals
0 0 0 0
Cash
Sales
Accts.
Cash
Discount
Recv.
Date
Account Cr.
Explanation
May 5
Knox, Inc.
Sale of April 28
9
Store Supplies
Sold store supplies
125
11
Hensel Company
Sale of May 2
15 Sales
Cash sales,
May 1
30 Lee Services
Sale of
May 22
31 Sales
Cash Sales,
May 16-31
0 0 0 0 0 0
Cash Disbursements Journal
Other Accts.
Check
Pay.
Date No.
Payee
May 1
3410
S&P Mgmt. Co.
Rent Exp., Selling
642
Rent Exp., Office
641
8
3411
15
3412
Payroll
Sales Salaries Exp.
621
Office Salaries Exp.
620
19
3
413
23
3
414
26
3
415
Perennial Power
Utilities Exp.
690
29
3416
Jenny Colo
J. Colo, Withdrawals
302
30
3417
Totals
COLO COMPANY
General Journal
Date
Description
May 2
Sales Returns and Allowances
Accounts Receivable
106
Issued a credit memo for returns.
3
Accounts Payable
201/√
Inventory
119
Received a credit memo for returns.
12
Accounts Payable-
Gear Supply Co.
Office Equipment
Adjusting entries
May 3
Insurance Expense
637
Prepaid Insurance
128
To adjust for expired insurance
31
Store Supplies Expense
651
Store Supplies 125 0
To adjust for store supplies used.
31
Office Supplies
650
Office Supplies
124
To adjust for office supplies used.
31
Depreciation Expense, Store Equip.
613
Accumulated Depr., Store Equip.
166
To record depreciation of store equipment.
31
Depreciation Expense, Office Equip.
612
Accumulated Depr., Office Equip.
164
To record depreciation of office equipment.
Closing entries
May 31
Income
901
To close temporary accounts with credit balances.
31 Income Summary 901
Sales Returns and Allowances 414 0
Sales Discounts
Cost of Goods Sold
502
Depr. Expense, Office Equipment
Depr. Expense,
Store Equipment
Office Salaries Expense
Sales Salaries Expense
Insurance Expense 637 0
Rent Expense, Office Space
Rent Expense, Selling Space
Office Supplies Expense
Store Supplies Expense 651 0
Utilities Expense
To close temporary accounts with debit balances.
Jenny Colo, Capital
301
To close income summary to owner’s capital.
31 Jenny Colo, Capital 301
Jenny Colo, Withdrawals
To close withdrawals to owner’s capital.
General Ledger
Cash
Account No.
101
Date
Item
Balance
Apr. 30
May 31
R2
31
D2
0
Accounts Receivable Account No. 106
Apr. 30 Balance
May 2
G2
31
S2
31 R2 0
Merchandise Inventory
Apr. 30 Balance
May 3 G2
31 D2
31
P2
31 R2
31 S2 0
Office Supplies Account No. 124
Apr. 30 Balance May 31 P2
31 G2 0
Store Supplies Account No. 125
Apr. 30 Balance
May 4 P2
9 R2
24 P2
Prepaid Insurance Account No. 128
Apr. 30 Balance
May 31 G2 0
Office Equipment Account No. 163
Apr. 30 Balance
May 10
12 G2 0
Accumulated Depreciation, Office Equipment
Apr. 30 Balance
May 31 G2 0 Store Equipment Account No.
165
Apr. 30 Balance
0
Accumulated Depreciation, Store Equipment
Apr. 30 Balance
May 31 G2 0 Accounts Payable Account No. 201
Apr. 30 Balance
May 3 G2
12 G2
31 D2 0 Jenny Colo, Capital Account No. 301
Apr. 30 Balance
May 31 G2
Jenny Colo, Withdrawals Account No. 302
May 29
Sales Account No. 413
May 31 S2
31 G2 0 Sales Returns and Allowances Account No. 414
May 2 G2
31 G2 0 Sales Discounts Account No. 415
May 31 R2
31 G2 0 Cost of Goods Sold Account No. 502
May 31 S2
31 R2
31 G2 0
Depreciation Expense, Ofc. Equipment
May 31 G2
31 G2 0
Depreciation Expense, Store Equipment
May 31 G2
31 G2 0 Office Salaries Expense Account No. 620
May 15
30 D2
Sales Salaries Expense Account No. 621
May 15 D2
30 D2
31 G2 0 Insurance Expense Account No. 637
May 31 G2
31 G2 0 Rent Expense, Office Space Account No. 641
May 1 D2
Rent Expense, Selling Space Account No. 642
May 1 D2
31 G2 0 Office Supplies Expense Account No. 650
May 31 G2
31 G2 0 Store Supplies Expense Account No. 651
May 31 G2
31 G2 0 Utilities Expense Account No. 690
May 26
Income Summary Account No. 901
May 31 G2 31 G2
COLO COMPANY
Accounts Receivable Ledger
Crane Corp.
May 26 S2 0
Hensel Company
May 2 S2
11 R2
16 S2 0
Knox Co.
Apr. 28
5 R2 0
Lee Services
May 22 S2
30 R2 0
Accounts Payable Ledger
Fink Corp.
May 17
23 D2 0
Garcia, Inc.
May 11
19 D2 0
Peyton Products
Apr. 29
8 D2
25 P2 0
Gear Supply Co.
May 4 P2 10 P2
24 P2 0
Work Sheet
For Month Ended
May 31, 2011
Balance Sheet
Unadjusted
or
Statement
Trial Balance
Adjustments
of Owner’s
Equity
Account Debit Credit Debit Credit Debit Credit Debit Credit
Cash
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Prepaid insurance
Office equipment
Accum. depr., office equip.
Store equipment
Accum. depr., store equip.
Accounts payable
Jenny Colo, Capital
Jenny Colo, Withdrawals
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depr. expense, office equip.
Depr. expense, store equip.
Office salaries expense
Sales salaries expense
Insurance expense
Rent exp., office space
Rent exp., selling space
Office supplies expense
Store supplies expense
Utilities expense
Net income
0 0 0 0
Income Statement
Revenue:
Less: Sales returns and allowances
Sales discounts Sales returns and allowances
Net sales
Less: Cost of goods sold
Gross profit on sales
Operating expenses:
Selling expenses:
Depreciation expense, store equipment
Rent expense, selling space
Total selling expenses
General and administrative expenses:
Depreciation expense, office equipment
Insurance expense
Rent expense, office space
Utilities expense
Total general and administrative expenses
Total operating expenses
Net income
COLO COMPANY
Statement of Owner’s Equity
Jenny Colo, Capital, April 30, 2011
Plus: Net income
Less: Withdrawals by owner
Jenny Colo, Capital, May 31, 2011
COLO COMPANY
Balance Sheet
May 31, 2011
Assets
Current assets:
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Prepaid insurance
Total current assets
Plant assets:
Less accumulated depreciation
Less accumulated depreciation 0
Total plant assets
Total assets
Liabilities
Current liabilities:
Accounts payable 0
Equity
Jenny Colo, Capital 0
Total liabilities and equity
Post-Closing Trial Balance
Debit Credit
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Prepaid insurance
Office equipment
Accum. depr., office equipment
Accum. depr., store equipment
Jenny Colo, Capital
Totals 0 0
Schedule of Accounts Receivable
Crane Corp. Hensel Company
Total accounts receivable
COLO COMPANY
Schedule of Accounts Payable
Peyton Products
Gear Supply Co.
Total accounts payable
Enter appropriate data in yellow cells. Your ending balances will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your entry for “Net income” will be verified.
Enter appropriate data in yellow cells. Your ending entry will be verified.
Enter appropriate data in yellow cells. Some of your entries will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your totals will be verified.Given P07C
Given Data P07C:
Inv. No.
Date Description Name
or Date
Amount
May1
Paid rent (80% selling space, 20% office space)
S&P Management Co.
$ 3,710
2
Sold merchandise on credit (cost $4,100)
8785
6,100
2
Issued credit memo on returned merchandise.
175
Total selling price (gross)
4,725
3
Received credit memo on returned merchandise
798
4
Purchased merchandise on credit
n/10 EOM
37,072
Purchased store supplies on credit
574
Purchased office supplies on credit
83
5
Received payment less discount
?
8
Paid inv. less 2 % discount and May 3 return
9
Sold office supplies for cash at cost
350
10
Purchased office equipment on credit
4,074
11 Received payment less discount Hensel Company May 2 ?
11 Purchased merchandise on credit Garcia, Inc. May 10 2/10, n/60
8,800
12
Received credit memo on returned merchandise.
854
15
Check issued for sales salaries
5,320
Check issued for office salaries
3,150
15
Cash sales for first half of month (cost $38,200)
59,220
16
Sold merchandise on credit (cost $1,890)
3,990
17 Purchased merchandise on credit Fink Corp.
May 14
13,650
19
Paid invoice less discount
3413
22
Sold merchandise on credit (cost $4,990)
23 Paid invoice less discount Fink Corp. May 14
3414
24 Purchased merchandise on credit Gear Supply Co.
May 23
8,120
Purchased store supplies on credit Gear Supply Co. May 23 n/10 EOM
630
Purchased office supplies on credit Gear Supply Co. May 23 n/10 EOM
280
25 Purchased merchandise on credit Peyton Products May 23 2/10, n/30
3,080
26
Sold merchandise on credit (cost $8,230)
26
Paid May electric bill
3415
1,283
29
Issued check to owner for personal use
Jenny Eureka
7,000
30 Received payment less discount Lee Services May 22 ?
30 Check issued for sales salaries Payroll 3417 5,320
Check issued for office salaries Payroll 3417 3,150
31
Cash sales for second half of month (cost $42,500)
66,052
Additional information:
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
Check figure:
(2) Unadjusted trial balance totals:
$545,020
Adjustments column totals:
$2,407
(3) Net income:
$31,647
Total assets:
$385,791
