Problems and Solutions (07-05A , P07-05 A ,06A, 07C ) final ACC

acc_finals.xls

Problems and Solutions (07-05A , P07-05 A ,06A, 07C ) final ACC

2

>P

0 7

-0

5

A

:

Journal

No.

Credit

1

3

4

5

Hanna Seppa

6

7

s

0 0

CHOI ENTERPRISES

Journal

Trans.

Purchases

Accounts

Date Account

No. Credit Debit Debit Debit

, n/60

2

5

3

15 Funk Company

4

15

12/15 2/10, n/60 5

17 KK’s Supply Co.

n/10 EOM 6

n/10 EOM 7

Crossland Company

2/10, n/60

31

0 0 0 0

CHOI ENTERPRISES

Receipts Journal

Sales Accounts Other

Trans. Cash

Sales Accounts Debit

Date

No. Debit Debit Credit Credit Credit

Dec. 2 Shilo Jones

/

3

15 Sales

4

15 Marge Craig

5

Hanna Seppa

6

25 Bo Brown

7

8

31 Sales Cash sales 9

31 Totals

0 0 0 0 0 0

CHOI ENTERPRISES

Other

Account Trans. Cash Inventory Accts.

Date No.

Debited No. Credit Credit Debit Debit

Dec. 2

4

6

Fireside Company 5

12

Funk Company Funk Company 6

15

7

23

Crossland Co. 8

24

Funk Company Funk Company 9

10

31

Jamie Inman Sales Salaries Exp. 11

31

12

31 Totals

0 0 0 0
CHOI ENTERPRISES

Trans.
Date

No. Debit Credit

-Fireside Company

2

Inventory

0
9

3

-Marge Craig

0
17

4

Inventory 0

5

Office Supplies 0
20 Sales Returns and Allowances 6

0

CHOI ENTERPRISES

Cash

Trans.

Date

Debit Credit

Balance

31

0

Accounts Receivable Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance

20

31

31 CRJ 0

Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance

Dec. 4
Dec. 31 CDJ
Dec. 31

Dec. 31 SJ
Dec. 31 CRJ 0
Office Supplies Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance

29

31

0

Account No.

Trans.
Date Item no. Debit Credit Balance

Nov. 30 Balance 0

Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance

0

Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance 0

Accounts Payable Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance

Dec. 4

17

18 GJ5
31 PJ

31 CDJ 0

Account No.

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance 0

Account No.

Trans.
Date Item no. Debit Credit Balance

0

Sales Account No.

Trans.
Date Item no. Debit Credit Balance
Dec. 31 SJ
31 CRJ 0

Sales Returns and Allowances Account No.

Trans.
Date Item no. Debit Credit Balance

Dec. 31 GJ3
31 GJ6 0

Account No.

Trans.
Date Item no. Debit Credit Balance
Dec. 31 CRJ 0

Account No.

2

Trans.
Date Item no. Debit Credit Balance
Dec. 31 CRJ

Dec. 31 SJ 0

Account No. 621

Trans.
Date Item no. Debit Credit Balance

31

0

Rent Expense Account No.

Trans.
Date Item no. Debit Credit Balance

Dec. 2

0

Utilities Expense Account No.

0

Trans.
Date Item no. Debit Credit Balance

Dec. 31

0

CHOI ENTERPRISES

Marge Craig

Trans.
Date Item no. Debit Credit Balance

9 GJ3
15

0

Hanna Seppa

Trans.
Date Item no. Debit Credit Balance

16

22

0

Shilo Jones

Trans.
Date Item no. Debit Credit Balance

Dec. 2

24

0

Bo Brown

Trans.
Date Item no. Debit Credit Balance

Dec. 15

20 GJ6

25

0

CHOI ENTERPRISES

Fireside Company

Trans.
Date Item no. Debit Credit Balance

GJ2

6

0

Trans.
Date Item no. Debit Credit Balance

17 PJ6

18 GJ5

21 PJ7 0
Crossland Company

Trans.
Date Item no. Debit Credit Balance

Dec. 15

23

26

0

Funk Company

Trans.
Date Item no. Debit Credit Balance

Dec. 2

12

15

17 GJ4

24

0

CHOI ENTERPRISES

Debit Credit
Cash
Ken Choi, Capital
Ken Choi, Withdrawals
Sales

Totals
0 0
CHOI ENTERPRISES

December 31
Hanna Seppa
Shilo Jones

0
CHOI ENTERPRISES

December 31
KK’s Supply Company
Crossland Company

0

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Name

Class:

Problem 07-05A

CHOI ENTERPRISES

Sales

Cost of Goods

Inv.

Trans.

A/R

Debit

Sold Debit

Date

Account

Debited

No.

Sales

Credit

Inventory

Dec.

6

Marge Craig

9

3

12

Hanna Seppa

91

4

15

Bo Brown

915

16

916

24

Shilo Jones

9

17

31

Total

Purchases

Accounts

Office

Other

Date of

Payable

Supplies

Invoice

Terms

Dec. 2

Funk Company

12/2

2/

10

KK’s Supply Co.

12/3

n/10 EOM

12/15

2/10, n/60

Crossland Company

12/16

21

Store Equip./KK’s Supply Co.

12/21

26

12/

25

8

Totals

Cash

COGS

Discount

Recv.

Account Cr.

Explanation

Inv. Credit

Invoice

11

23

Cash sales

Invoice 12/6

22

Invoice 12/12

Invoice 12/15

29

Office Supplies

Sold supplies

Cash Disbursements Journal

Accts.

Check

Pay.

Payee

6

19

Omni Realty Co.

Rent Expense

6

20

Fireside Company

621

622

Jamie Inman

Sales Salaries Exp.

623

Crossland Co.

624

30

625

Ken Choi

Ken Choi, Withdr.

626

6

27

Access Elec. Co.

Utilities Expense

General Journal

Description

Dec. 4

Accounts Payable

Sales Returns and Allowances

Accounts Receivable

Accounts Payable-Funk Company

18

Accounts Payable-KK’s Supply Co.

Accounts Receivable-Bo Brown

General Ledger

Account No.

101

Item

no.

Balance

Nov. 30

Dec. 31

CRJ

CDJ

106

Dec. 9

GJ3

GJ6

SJ

Merchandise Inventory

119

Dec. 17

PJ

124

Dec. 18

GJ5

CR8

PJ6

Store Supplies

125

Store Equipment

1

65

Dec. 21

PJ7

Accumulated Depr. – Store Equipment

1

66

201

GJ2

GJ4

Ken Choi, Capital

308

Ken Choi, Withdrawals

318

Dec. 30

CD10

4

13

4

14

Sales Discounts

415

Cost of Goods Sold

50

Sales Salaries Expense

Dec. 15

CD7

CD11

6

40

CD4

69

CD12

Accounts Receivable Ledger

Dec. 6

SJ3

CR5

Dec. 12

SJ4

SJ6

CR6

Nov. 23

CR3

SJ7

SJ5

CR7

Accounts Payable Ledger

Nov.

28

Dec.4

CD5

KK’s Supply Company

Dec. 5

PJ3

PJ5

CD8

PJ8

PJ2

CD6

PJ4

CD9

Trial Balance

December 31

Accounts receivable

Merchandise inventory

Office supplies

Store supplies

Store equipment

Accumulated depreciation, store equipment

Accounts payable

Sales returns and allowances

Sales discounts

Cost of goods sold

Sales salaries expense

Rent expense

Utilities expense

Schedule of Accounts Receivable

Total accounts receivable

Schedule of Accounts Payable

Total accounts payable

Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your Credit entries will be verified.
Enter appropriate data in yellow cells. Your ending balances will be verified.
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 totals will be verified.

Given P07-05A

CHOI ENTERPRISES

Check

Date Description Name

No. Terms

)

Hanna Seppa 916

0

17

Funk Company Dec. 15

17

KK’s Supply Company Dec. 16 n/10 EOM

18 Received credit memo on returned merch. KK’s Supply Company Dec. 17 40
20

Bo Brown Dec. 15

21

KK’s Supply Company Dec. 21 n/10 EOM

22

Hanna Seppa Dec. 12

23

Crossland Company Dec. 15 623

24

Shilo Jones

24

Funk Company Dec. 15 624

25

Bo Brown Dec. 15

26

Crossland Company

2/10, n/60

29

50

30

Ken Choi 625

31

Jamie Inman 626

31

627

0

31

Given Data P07-05A:

Inv. No.

or Date

Amount

Dec. 16

Merchandise sold (cost $

4,600

2/10, n/30

$ 7,

70

Received credit memo on returned merch.

1,040

Purchased office supplies

615

Issued credit memo on returned merch.

500

Purchased store equipment

6,700

Received payment less discount

Paid invoice less discount

Sold merchandise on credit (cost $600)

917

1,200

Paid inv. less discount and return

Received payment less discount and return

Purchased merchandise and invoice

Dec. 25

8,100

Sold office supplies for cash at cost

Issued check to owner for personal use

3,500

Check issued for sales salaries

2,020

Issued check for electric bill

Access Electric Company

71

Cash sales for last half of month (cost $11,200)

29,600

Check figure: Trial balance totals

$219,408

P07-06A

Class:

COGS
Inv. Trans.

Debit

Date

No. No.

Inv. Credit

4

2

3

3

10

4

27 Taylor Few

5

28 Lance Snow

6

31

Total
0 0

BISHOP COMPANY

Accounts Office Other

Inv. Trans. Payable Purchases Supplies Accounts
Date Account Date Terms No. Credit Debit Debit Debit

3

42,600

3

3/3 n/10 EOM 2

1,120

9

n/10 EOM 4

20,850

14

2/10, n/30 5

31,625

16

n/10 EOM 6

0

1,670

31 Totals

5

,225

1,120

Correct! Correct! Correct!

BISHOP COMPANY

Sales Accounts Other COGS
Trans. Cash Discount Recv. Sales Accounts Debit
Date Account Cr. Explanation No. Debit Debit Credit Credit Credit Inv. Credit

2

12 Min Cho

3

13 Lance Snow

4

15 Sales Cash sales 5
20 Taylor Few

6

31 Sales Cash sales 7

31 Totals
0 0 0 0 0 0
BISHOP COMPANY
Cash Disbursements Journal
Other Accts.
Check Account Trans. Cash Inventory Accts. Pay.
Date No. Payee Debited No. Credit Credit Debit Debit

Soy Industries Soy Industries 2

15

Sales Salaries Exp. 3

23

The JW Company 4

31

Payroll Sales Salaries Exp. 5

31 Totals
0 0 0 0
BISHOP COMPANY
General Journal

Trans.

Date Description No. Debit Credit

2

Inventory 0

19

3

0

BISHOP COMPANY
General Ledger
Cash Account No. 101
Trans.
Date Item no. Debit Credit Balance

1

CRJ

31 CDJ 0
Accounts Receivable Account No. 106
Trans.
Date Item no. Debit Credit Balance

SJ

31 CRJ 0

Inventory Account No. 119

Trans.
Date Item no. Debit Credit Balance

Mar. 1

17 GJ2

31 PJ

31 CDJ

31 SJ
31 CRJ 0
Office Supplies Account No. 124
Trans.
Date Item no. Debit Credit Balance

Mar. 3 PJ2 0

Store Supplies Account No. 125
Trans.
Date Item no. Debit Credit Balance

PJ6 0

Office Equipment Account No.

Trans.
Date Item no. Debit Credit Balance

PJ4

19 GJ3 0

Accounts Payable Account No. 201
Trans.
Date Item no. Debit Credit Balance

Mar. 17 GJ2
19 GJ3

31 PJ
31 CDJ 0

Account No.

Trans.
Date Item no. Debit Credit Balance

Mar. 6

0

Account No. 308

Trans.
Date Item no. Debit Credit Balance

Beginning balance 0

Sales Account No.

Trans.
Date Item no. Debit Credit Balance
Mar. 31 SJ
31 CRJ 0
Sales Discounts Account No. 415
Trans.
Date Item no. Debit Credit Balance

Mar. 31 CRJ 0

Cost of Goods Sold Account No.

Trans.
Date Item no. Debit Credit Balance
Mar. 31 CRJ

31 SJ 0

Sales Salaries Expense Account No. 621
Trans.
Date Item no. Debit Credit Balance

Mar. 15

31 CD5 0

BISHOP COMPANY
Accounts Receivable Ledger

Taylor Few

Trans.
Date Item no. Debit Credit Balance

SJ4

20 CR6
27 SJ5 0
Min Cho

Trans.
Date Item no. Debit Credit Balance

Mar. 2

12 CR3 0
Lance Snow

Trans.
Date Item no. Debit Credit Balance

Mar. 3 SJ3
13

28 SJ6 0

BISHOP COMPANY
Accounts Payable Ledger

Stacy Company

Trans.
Date Item no. Debit Credit Balance

Mar. 3 PJ2
16 PJ6 0
Soy Industries

Trans.
Date Item no. Debit Credit Balance

PJ3

13

0

Tells Supply

Trans.
Date Item no. Debit Credit Balance
Mar. 9 PJ4
19 GJ3 0

The JW Company

Trans.
Date Item no. Debit Credit Balance

PJ5

17 GJ2

23 CD4 0

BISHOP COMPANY

)

Debit Credit
Cash
Accounts receivable

Inventory

Office supplies
Store supplies

Accounts payable

Sales
Sales discounts
Cost of goods sold
Sales salaries expense
Totals
0 0
BISHOP COMPANY
Schedule of Accounts Receivable
March 31
Taylor Few
Lance Snow
Total accounts receivable
0
BISHOP COMPANY
Schedule of Accounts Payable
March 31
Stacy Company
Tells Supply
Total accounts payable
0

Student Name:

Problem 07-06A

BISHOP COMPANY

Sales Journal

Acct. Rec.

Account Debited

Sales Cr.

Mar. 2

Min Cho

85

Lance Snow

855

Taylor Few

856

857

858

Purchases Journal

Mar. 1

Soy Industries

3/3

2/15, n/30

42,600

Stacy Company

1,120

Office Equip./

Tells Supply

3/9

20,850

The

JW Company

3/13

31,625

Store Supplies/Stacy Co.

3/16

1,

67

97,

86

74

22,520

Correct!

Cash Receipts Journal

Mar. 6

L.T. Notes Pay.

Note to bank

Invoice, 3/2

Invoice, 3/3

Invoice, 3/10

Mar. 13

416

417

Payroll

418

The JW Co.

419

Mar. 17

Accounts Payable-JW Co.

Accounts Payable-Tells Supply

Office Equipment

Mar. 3

Mar. 31

Beginning balance

Mar. 16

163

Mar. 9

Long-Term Notes Payable

251

C

R2

M.Bishop, Capital

Mar. 15

413

502

CD3

Mar. 10

SJ2

CR4

Mar. 5

CD2

Mar. 14

Trial Balance (

Unadjusted

March 31

Office equipment

Long-term notes payable

M. Bishop, Capital

Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
Enter appropriate data in yellow cells. Your Credit entries will be verified.
Enter appropriate data in yellow cells. Your ending balances will be verified.
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 totals will be verified.

Given P07-06A

BISHOP COMPANY
Inv. No. Check
Date Description Name or Date No. Terms Amount

Mar. 1

Soy Industries Mar. 1 2/15, n/30 42,600

2

Min Cho

2/10, n/30

0

3 Purchased office supplies Stacy Company Mar. 3 n/10 EOM 1,120
3 Merchandise sold (cost $4,600) Lance Snow 855 2/10, n/30

6

,000

9

Tells Supply Mar. 9 n/10 EOM 20,850

10

Taylor Few 856 2/10, n/30 4,600

12 Received payment less discount Min Cho 854 2/10, n/30
13 Paid invoice less discount Soy Industries Mar. 3 416 2/10, n/30
13 Received payment less discount Lance Snow 855 2/10, n/30
14

JW Company Mar. 13 2/10, n/30 31,625

15 Check issued for sales salaries 417

15

,

0

16

Stacy Company Mar. 16 n/10 EOM 1,670

17 Received credit memo on returned merch. JW Company

19 Received credit memo on returned merch. Tells Supply

20 Received payment less discount Taylor Few 856 2/10, n/30
23

JW Company Mar. 13 418 2/10, n/30

27

Taylor Few 857 2/10, n/30

28

)

Lance Snow 858 2/10, n/30

31 Check issued for sales salaries 419 15,900
31

0)

Check figure: Trial balance totals

8

Given Data P07-06A:
Received merchandise and invoice
Merchandise sold (cost $7,900)	854	15,		80
9,200
Borrowed on long-term note payable	Federal Bank		72
Purchased office equipment
Sold merchandise (cost $2,300)
Purchase merchandise
	15,900
Cash sales for first half of month (cost $138,000)		164	68
Purchased store supplies
2,425
	630
Paid inv. less discount and credit memo
Merchandise sold (cost $6,220)	13,910
Merchandise sold (cost $2,	280	5,315
Cash sales for second half of month (cost $16,			82	174,590
$	73

P07C

Student Name:
Class:

Sales Journal

COGS

Inv. Trans. Sales Debit
Date Account Debited No. No. Credit Inv. Credit

5

16 Hensel Company

22

85

26

86

31 Totals
0 0
COLO COMPANY
Purchases Journal
Accounts Office Other

Inv. Trans. Payable Inventory Supplies Accounts

Date Account Date Terms No. Credit Debit Debit Debit

78

10

n/10, EOM

11

5/10

80

17

2/10, n/60

24 Store Supp./Gear Supp.

n/10, EOM 82

25

2/10, n/30 83

31 Totals
0 0 0 0
COLO COMPANY
Cash Receipts Journal

Sales Accts. Other COGS
Trans. Cash Discount Recv. Sales Accts. Debit

Date Account Cr. Explanation No. Debit Debit Credit Credit Credit Inv. Credit

81

9 Store Supplies

82

11 Hensel Company

83

15 Sales

84

-15

30 Lee Services

85

31 Sales

86

31 Totals
0 0 0 0 0 0
COLO COMPANY
Cash Disbursements Journal
Other Accts.
Check Account Trans. Cash Inventory Accts. Pay.
Date No. Payee Debited No. Credit Credit Debit Debit

May 1

8

Peyton Products Peyton Products

15

Payroll Sales Salaries Exp. 78

19

Garcia, Inc. Garcia, Inc. 79

23

Fink Corp. Fink Corp. 80

26

81

29

82

30

Payroll Sales Salaries Exp. 83

Office Salaries Exp.

Totals

0 0 0 0
COLO COMPANY
General Journal
Trans.
Date Description No. Debit Credit

May 2 Sales Returns and Allowances 65

0

3

66

Inventory 0

12

67

Office Equipment 0

1

68

0

31

69

Store Supplies 0
31

70

Office Supplies 0

31

71

0

31

72

0

Summary

73

Sales Discounts 0
Sales Returns and Allowances 0
Cost of Goods Sold 0

0

0

0

Sales Salaries Expense 0
Insurance Expense 0

0

0

Office Supplies Expense 0
Store Supplies Expense 0
Utilities Expense 0
31 Sales 74
Income Summary 0
31 Income Summary

0

31 J. Colo, Capital 76
J. Colo, Withdrawals 0

COLO COMPANY
General Ledger
Cash Account No. 101
Trans.
Date Item no. Debit Credit Balance

Balance

May 31 CRJ

31 CDJ 0
Accounts Receivable Account No. 106
Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 2

31 SJ
31 CRJ 0
Merchandise Inventory Account No. 119
Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 31

31 CDJ
31 PJ

31 CRJ

31 SJ 0
Office Supplies Account No. 124
Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 31 PJ
31

0

Store Supplies Account No. 125
Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 4

9

24

31

0

Prepaid Insurance Account No.

Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 31

0

Office Equipment Account No. 163
Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

12

0

Account No. 164

Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 31

0

Store Equipment Account No.

Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

Account No.

Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 31

0

Accounts Payable Account No. 201
Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 3 GJ66
12 GJ67

31 PJ
31 CDJ 0

Account No.

Trans.
Date Item no. Debit Credit Balance

Apr. 30 Balance

May 31

31

0

Account No.

Trans.
Date Item no. Debit Credit Balance

31 GJ76 0
Sales Account No. 413
Trans.
Date Item no. Debit Credit Balance

May 31 SJ

31 CRJ

31

0

Account No. 414

Trans.
Date Item no. Debit Credit Balance

May 2

31

0

Sales Discounts Account No. 415
Trans.
Date Item no. Debit Credit Balance
May 31 CRJ
31 GJ73 0
Cost of Goods Sold Account No. 502
Trans.
Date Item no. Debit Credit Balance

May 31

31 R2
31

0

Account No.

Trans.
Date Item no. Debit Credit Balance

May 31 GJ72

31 GJ73 0

Account No.

Trans.
Date Item no. Debit Credit Balance

May 31 GJ71

31 GJ73 0

Office Salaries Expense Account No.

Trans.
Date Item no. Debit Credit Balance

30

31 GJ73 0
Sales Salaries Expense Account No. 621
Trans.
Date Item no. Debit Credit Balance
May 15 CD78
30 CD83
31 GJ73 0

Insurance Expense Account No.

Trans.
Date Item no. Debit Credit Balance

May 31 GJ68

31 GJ73 0

Rent Expense, Office Space Account No.

Trans.
Date Item no. Debit Credit Balance

May 1

31 GJ73 0

Rent Expense, Selling Space Account No.

Trans.
Date Item no. Debit Credit Balance
May 1 CD76
31 GJ73 0

Office Supplies Expense Account No.

Trans.
Date Item no. Debit Credit Balance

May 31 GJ70

31 GJ73 0

Store Supplies Expense Account No.

Trans.
Date Item no. Debit Credit Balance

May 31 GJ69

31 GJ73 0
Utilities Expense Account No.

Trans.
Date Item no. Debit Credit Balance

31 GJ73 0

Income Summary Account No.

Trans.
Date Item no. Debit Credit Balance

May 31 GJ73
31 GJ74
31 GJ75 0

COLO COMPANY
Accounts Receivable Ledger

Crane Corp.

Trans.
Date Item no. Debit Credit Balance

May 26

0

Hensel Company

Trans.
Date Item no. Debit Credit Balance

May 2

11

16

0

Knox, Inc.

Trans.
Date Item no. Debit Credit Balance

S2 4,725 4,725

May 2 GJ65

5

0

Lee Services

Trans.
Date Item no. Debit Credit Balance

May 22

30

0

COLO COMPANY
Accounts Payable Ledger

Fink Corp.

Trans.
Date Item no. Debit Credit Balance

23

0

Garcia, Inc.

Trans.
Date Item no. Debit Credit Balance

19

0

Peyton Products

Trans.
Date Item no. Debit Credit Balance

PJ 7,098 7,098

May 3

8

25

0

Gear Supply Co.

Trans.
Date Item no. Debit Credit Balance
May 4 PJ78

10 PJ79

12 GJ67

24 PJ82 0

COLO COMPANY

Unadjusted

Income

Trial Balance

Trial Balance Statement

Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Cash
Accounts receivable
Merchandise inventory
Office supplies
Store supplies

Office equipment

Store equipment

Accounts payable

J. Colo, Capital
J. Colo, Withdrawals

Sales
Sales discounts
Sales returns and allowances
Cost of goods sold

Sales salaries expense

Utilities expense
Totals

Totals 0 0 0 0 0 0
0 0 0 0

COLO COMPANY

For Month Ended May 31, 2005

Sales

Sales returns and allowances

Sales salaries expense

Store supplies expense

Office salaries expense
Insurance expense

Office supplies expense
Utilities expense

Net income 0

COLO COMPANY

For Month Ended May 31, 2005

Total

0

COLO COMPANY
Balance Sheet

May 31, 2005

Cash
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Prepaid insurance

0

Office equipment

0

Store equipment
Less accumulated depreciation 0

0

0

Accounts payable 0
Owner’s Equity
Jenny Colo, Capital 0

0

COLO COMPANY

May 31, 2005
Debit Credit
Cash
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Prepaid insurance
Office equipment

Store equipment

Accounts payable

Jenny Colo, Capital

Totals
0 0
COLO COMPANY
Schedule of Accounts Receivable
May 31, 2005
Crane Corp.
Hensel Company

Total accounts receivable 0

COLO COMPANY
Schedule of Accounts Payable
May 31, 2005
Peyton Products
Gear Supply Co.

Total accounts payable 0

Problem 07C

COLO COMPANY

AR Debit

May 2

Hensel Company

8

78

83

8786

84

Lee Services

8787

Crane Corp.

8788

May 4

Store Supp./Gear Supp.

5/4

n/10, EOM

Off. Equip./Gear Supp.

5/10

79

Garcia, Inc.

n/30, n/30

Fink Corp.

5/14

81

5/24

Peyton Products

5/23

May 5

Knox, Inc.

Sale of April 28

Sold store supplies

Sale of May 2

Cash sales,

May 1

Sale of

May 22

Cash Sales,

May 16-31

3410

S&P Mgmt. Co.

Rent Exp., Selling

76

Rent Exp., Office

3411

77

3412

Office Salaries Exp.

3413

3

414

3415

Perennial Power

Utilities Exp.

3416

Jenny Colo

J. Colo, Withdrawals

3417

Accounts Receivable-Knox, Inc.

Accounts Payable-Peyton Products

Accounts Payable-

Gear Supply Co.

Adjusting entries

May 3

Insurance Expense

Prepaid Insurance

Store Supplies Expense

Office Supplies Expense

Depreciation Expense, Store Equip.

Accumulated Depr., Store Equip.

Depreciation Expense, Office Equip.

Accumulated Depr., Office Equip.

Closing entries

May 31

Income

Depr. Expense, Office Equipment

Depr. Expense, Store Equipment

Office Salaries Expense

Rent Expense, Office Space

Rent Expense, Selling Space

75

J. Colo, Capital

Apr. 30

50,247

4,725

JG65

220,080

GJ66

430

GJ70

2,447

PJ78

CR82

PJ82

GJ69

128

3,318

GJ68

22,470

May 10

PJ79

GJ67

Accumulated Depreciation, Office Equipment

9,898

GJ72

165

38,920

Accumulated Depreciation, Store Equipment

166

17,556

GJ71

7,098

Jenny Colo, Capital

301

308,085

GJ75

GJ76

Jenny Colo, Withdrawals

302

May 29

CD82

GJ74

Sales Returns & Allowances

GJ65

GJ73

S2

G3

Depreciation Expense, Ofc. Equipment

612

Depreciation Expense, Store Equipment

613

620

May 15

CD78

CD83

637

641

CD76

642

650

651

690

May 26

CD81

901

SJ86

SJ83

CR83

SJ84

Apr. 28

CR81

SJ85

CR85

May 17

PJ81

CD80

May 11

PJ80

CD79

Apr. 29

JG66

CD77

PJ83

Work Sheet

For Month Ended

May 31, 2005

Balance Sheet

Adjusted

&

Statement

Adjustments

of

Owner’s Equity

Prepaid insurance

Accum. depr., office equip.

Accum. depr., store equip.

Depr. expense, office equip.

Depr. expense, store equip.

Office salaries expense

Insurance expense

Rent exp., office space

Rent exp., selling space

Office supplies expense

Store supplies expense

Net income

Income Statement

Revenue:

Less: Sales discounts

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

Rent expense, office space

Total general and administrative expenses

Total operating expenses

Statement of Owner’s Equity

Jenny Colo, Capital, April 30, 2005

Plus: Net income

Less: Withdrawals by owner

Jenny Colo, Capital, May 31, 2005

Assets

Current assets:

Total current assets

Plant assets:

Less accumulated depreciation

Total plant assets

Total assets

Liabilities

Current liabilities:

Total liabilities and equity

Post-Closing Trial Balance

Accum. depr., office equipment

Accum. depr., store equipment

Enter appropriate data in yellow cells. Your entries for “Totals” will be verified.
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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.
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Given P07C

COLO COMPANY
Inv. No. Check
Date Description Name or Date No. Terms Amount

3410

2

Hensel Company

2/10, n/60

2 Issued credit memo on returned merch. Knox, Inc. Apr. 28

Knox, Inc. Apr. 28 4,725

3 Received credit memo on returned merch. Peyton Products Apr. 29

4

Gear Supply Co. May 4 n/10 EOM

Gear Supply Co. May 4 n/10 EOM

Gear Supply Co. May 4 n/10 EOM 83

5 Received payment less discount and return Knox, Inc. Apr. 28 n/10 EOM

8

Peyton Products Apr. 29 3411 ?

9

10

Gear Supply Co. May 10 n/10 EOM

11 Received payment less discount Hensel Company May 2 ?
11 Purchased merchandise on credit Garcia, Inc. May 10 2/10, n/60

12 Received credit memo on returned merch. Gear Supply Co. May 10 854
15 Check issued for sales salaries Payroll 3412

Payroll 3412

15

16

Hensel Company 8786 2/10, n/60

17 Purchased merchandise on credit Fink Corp.

2/10, n/60

19 Paid invoice less discount Garcia, Inc. May 10 3413
22

Lee Services 8787 2/10, n/60

23 Paid invoice less discount Fink Corp. May 14

?

24 Purchased merchandise on credit Gear Supply Co.

n/10 EOM

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

26

Crane Corp. 8788 2/10, n/60

26

Perennial Power 3415

29 Issued check to owner for personal use Jenny Colo 3416

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

Given Data P07C:
May1	Paid rent (80% selling space, 20% office space)	S&P Management Co.	$ 3,710
Sold merchandise on credit (cost $4,100)	8785	6,100
175
Total selling price (gross)
798
				Purchased merchandise on credit	37,072
	Purchased store supplies on credit	574
	Purchased office supplies on credit
				?
Paid inv. less 2 % discount and May 3 return
Sold store supplies for cash at cost	350
Purchased office equipment on credit	4,074
8,800
	5,320
	Check issued for office salaries		3,150
Cash sales for first half of month (cost $38,200)	59,220
Sold merchandise on credit (cost $1,890)	3,990
	May 14	13,650
Sold merchandise on credit (cost $4,990)	6,850
3414
			May 23	8,120
3,080
Sold merchandise on credit (cost $8,230)	14,210
Paid April electric bill	1,283
7,000
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. Estimated depreciation of store equipment	567
e. Estimated depreciation of office equipment	329