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P07C

		Student Name:	Clarence Thomas
		Class:	AC201
			Problem 07C
COLO COMPANY
Sales Journal
				Acct's Rcvble	COGS
		Inv.		Debit	Debit
Date	Account Debited	No.	PR	Sales Credit	Inv. Credit
May 2	Hensel Company	8785	√	6,100	4,100
16	Hensel Company	8786	√	3,990	1,890
22	Lee Services	8787	√	6,850	4,990
26	Crane Corp.	8788	√	14,210	8,230
31	Totals			31,150	19,210
				Correct!	Correct!
COLO COMPANY
Purchases Journal
					Accounts		Office	Other
		Inv.			Payable	Inventory	Supplies	Accounts
Date	Account	Date	Terms	PR	Credit	Debit	Debit	Debit
May 4	Store Supp./Gear Supp.	5/04	n/10, EOM	125/√
10	Off. Equip./Gear Supp.	5/10	n/10, EOM	163/√
11	Garcia, Inc.	5/10	2/10, n/30	√
17	Fink Corp.	5/14	2/10, n/60	√
24	Store Supp./Gear Supp.	5/24	n/10, EOM	125/√
25	Peyton Products	5/23	2/10, n/30	√
31	Totals
					0	0	0	0
COLO COMPANY
Cash Receipts Journal
					Sales	Accts.		Other	COGS
				Cash	Discount	Recv.	Sales	Accts.	Debit
Date	Account Cr.	Explanation	PR	Debit	Debit	Credit	Credit	Credit	Inv. Credit
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 1-15
30	Lee Services	Sale of May 22	√
31	Sales	Cash Sales,	√
		May 16-31
31	Totals
				0	0	0	0	0	0
COLO COMPANY
Cash Disbursements Journal
							Other	Accts.
	Check		Account		Cash	Inventory	Accts.	Pay.
Date	No.	Payee	Debited	PR	Credit	Credit	Debit	Debit
May 1	3410	S&P Mgmt. Co.	Rent Exp., Selling	642
			Rent Exp., Office	641
8	3411	Peyton Products	Peyton Products	√
15	3412	Payroll	Sales Salaries Exp.	621
			Office Salaries Exp.	620
19	3413	Garcia, Inc.	Garcia, Inc.	√
23	3414	Fink Corp.	Fink Corp.	√
26	3415	Perennial Power	Utilities Exp.	690
29	3416	Jenny Colo	J. Colo, Withdrawals	302
30	3417	Payroll	Sales Salaries Exp.	621
			Office Salaries Exp.	620
		Totals
					0	0	0	0
COLO COMPANY
General Journal
Date	Description		PR	Debit	Credit
May 2	Sales Returns and Allowances		414
	Accounts Receivable-Knox, Inc.		106/√			0
	Issued a credit memo for returns.
3	Accounts Payable-Peyton Products		201/√
	Inventory		119			0
	Received a credit memo for returns.
12	Accounts Payable-Gear Supply Co.		201/√
	Office Equipment		163			0
	Received a credit memo for returns.
	Adjusting entries
May 31	Insurance Expense		637
	Prepaid Insurance		128			0
	To adjust for expired insurance
31	Store Supplies Expense		651
	Store Supplies		125			0
	To adjust for store supplies used.
31	Office Supplies Expense		650
	Office Supplies		124			0
	To adjust for office supplies used.
31	Depreciation Expense, Store Equip.		613
	Accumulated Depr., Store Equip.		166			0
	To record depreciation of store equipment.
31	Depreciation Expense, Office Equip.		612
	Accumulated Depr., Office Equip.		164			0
	To record depreciation of office equipment.
	Closing entries
May 31	Sales		413
	Income Summary		901			0
	To close temporary accounts with credit balances.
31	Income Summary		901
	Sales Returns and Allowances		414			0
	Sales Discounts		415			0
	Cost of Goods Sold		502			0
	Depr. Expense, Office Equipment		612			0
	Depr. Expense, Store Equipment		613			0
	Office Salaries Expense		620			0
	Sales Salaries Expense		621			0
	Insurance Expense		637			0
	Rent Expense, Office Space		641			0
	Rent Expense, Selling Space		642			0
	Office Supplies Expense		650			0
	Store Supplies Expense		651			0
	Utilities Expense		690			0
	To close temporary accounts with debit balances.
31	Income Summary		901
	Jenny Colo, Capital		301			0
	To close income summary to owner's capital.
31	Jenny Colo, Capital		301
	Jenny Colo, Withdrawals		302			0
	To close withdrawals to owner's capital.
COLO COMPANY
General Ledger
Cash				Account No.	101
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 31		R2
31		D2				0
Accounts Receivable				Account No.	106
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 2		G2
31		S2
31		R2				0
Merchandise Inventory				Account No.	119
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 3		G2
31		D2
31		P2
31		R2
31		S2				0
Office Supplies				Account No.	124
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 31		P2
31		G2				0
Store Supplies				Account No.	125
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 4		P2
9		R2
24		P2
31		G2				0
Prepaid Insurance				Account No.	128
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 31		G2				0
Office Equipment				Account No.	163
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 10		P2
12		G2				0
Accumulated Depreciation, Office Equipment				Account No.	164
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 31		G2				0
Store Equipment				Account No.	165
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance					0
Accumulated Depreciation, Store Equipment				Account No.	166
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 31		G2				0
Accounts Payable				Account No.	201
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 3		G2
12		G2
31		P2
31		D2				0
Jenny Colo, Capital				Account No.	301
Date	Item	PR	Debit	Credit	Balance
Apr. 30	Balance
May 31		G2
31		G2				0
Jenny Colo, Withdrawals				Account No.	302
Date	Item	PR	Debit	Credit	Balance
May 29		D2
31		G2				0
Sales				Account No.	413
Date	Item	PR	Debit	Credit	Balance
May 31		S2
31		R2
31		G2				0
Sales Returns and Allowances				Account No.	414
Date	Item	PR	Debit	Credit	Balance
May 2		G2
31		G2				0
Sales Discounts				Account No.	415
Date	Item	PR	Debit	Credit	Balance
May 31		R2
31		G2				0
Cost of Goods Sold				Account No.	502
Date	Item	PR	Debit	Credit	Balance
May 31		S2
31		R2
31		G2				0
Depreciation Expense, Ofc. Equipment				Account No.	612
Date	Item	PR	Debit	Credit	Balance
May 31		G2
31		G2				0
Depreciation Expense, Store Equipment				Account No.	613
Date	Item	PR	Debit	Credit	Balance
May 31		G2
31		G2				0
Office Salaries Expense				Account No.	620
Date	Item	PR	Debit	Credit	Balance
May 15		D2
30		D2
31		G2				0
Sales Salaries Expense				Account No.	621
Date	Item	PR	Debit	Credit	Balance
May 15		D2
30		D2
31		G2				0
Insurance Expense				Account No.	637
Date	Item	PR	Debit	Credit	Balance
May 31		G2
31		G2				0
Rent Expense, Office Space				Account No.	641
Date	Item	PR	Debit	Credit	Balance
May 1		D2
31		G2				0
Rent Expense, Selling Space				Account No.	642
Date	Item	PR	Debit	Credit	Balance
May 1		D2
31		G2				0
Office Supplies Expense				Account No.	650
Date	Item	PR	Debit	Credit	Balance
May 31		G2
31		G2				0
Store Supplies Expense				Account No.	651
Date	Item	PR	Debit	Credit	Balance
May 31		G2
31		G2				0
Utilities Expense				Account No.	690
Date	Item	PR	Debit	Credit	Balance
May 26		D2
31		G2				0
Income Summary				Account No.	901
Date	Item	PR	Debit	Credit	Balance
May 31		G2
31		G2
31		G2				0
COLO COMPANY
Accounts Receivable Ledger
Crane Corp.
Date	Item	PR	Debit	Credit	Balance
May 26		S2				0
Hensel Company
Date	Item	PR	Debit	Credit	Balance
May 2		S2
11		R2
16		S2				0
Knox Co.
Date	Item	PR	Debit	Credit	Balance
Apr. 28		S2
May 2		G2
5		R2				0
Lee Services
Date	Item	PR	Debit	Credit	Balance
May 22		S2
30		R2				0
COLO COMPANY
Accounts Payable Ledger
Fink Corp.
Date	Item	PR	Debit	Credit	Balance
May 17		P2
23		D2				0
Garcia, Inc.
Date	Item	PR	Debit	Credit	Balance
May 11		P2
19		D2				0
Peyton Products
Date	Item	PR	Debit	Credit	Balance
Apr. 29		P2
May 3		G2
8		D2
25		P2				0
Gear Supply Co.
Date	Item	PR	Debit	Credit	Balance
May 4		P2
10		P2
12		G2
24		P2				0
COLO COMPANY
Work Sheet
For Month Ended May 31, 2011
								Balance Sheet
		Unadjusted				Income		or Statement
		Trial Balance		Adjustments		Statement		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
Totals
Net income		0	0	0	0
Totals
						0	0	0	0
COLO COMPANY
Income Statement
For Month Ended May 31, 2011
Revenue:
Sales
Less: Sales returns and allowances	Sales discounts
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
Sales salaries expense
Rent expense, selling space
Store supplies expense
Total selling expenses
General and administrative expenses:
Depreciation expense, office equipment
Office salaries expense
Insurance expense
Rent expense, office space
Office supplies expense
Utilities expense
Total general and administrative expenses
Total operating expenses
Net income
				0
COLO COMPANY
Statement of Owner's Equity
For Month Ended May 31, 2011
Jenny Colo, Capital, April 30, 2011
Plus: Net income
Less: Withdrawals by owner
Jenny Colo, Capital, May 31, 2011
			0
COLO COMPANY
Balance Sheet
May 31, 2011
Assets
Current assets:
Cash
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Prepaid insurance
Total current assets					0
Plant assets:
Office equipment
Less accumulated depreciation					0
Store equipment
Less accumulated depreciation					0
Total plant assets					0
Total assets					0
Liabilities
Current liabilities:
Accounts payable					0
Equity
Jenny Colo, Capital					0
Total liabilities and equity					0
COLO COMPANY
Post-Closing Trial Balance
May 31, 2011
		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
Totals
		0	0
COLO COMPANY
Schedule of Accounts Receivable
May 31, 2011
Crane Corp.
Hensel Company
Total accounts receivable
		0
COLO COMPANY
Schedule of Accounts Payable
May 31, 2011
Peyton Products
Gear Supply Co.
Total accounts payable
		0

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Given P07C

Given Data P07C:
COLO COMPANY
			Inv. No.	Check
Date	Description	Name	or Date	No.	Terms	Amount
May1	Paid rent (80% selling space, 20% office space)	S&P Management Co.		3410		$ 3,710
2	Sold merchandise on credit (cost $4,100)	Hensel Company	8785		2/10, n/60	6,100
2	Issued credit memo on returned merchandise.	Knox Co.	Apr. 28			175
	Total selling price (gross)	Knox Co.	Apr. 28			4,725
3	Received credit memo on returned merchandise	Peyton Products	Apr. 29			798
4	Purchased merchandise on credit	Gear Supply Co.	May 4		n/10 EOM	37,072
	Purchased store supplies on credit	Gear Supply Co.	May 4		n/10 EOM	574
	Purchased office supplies on credit	Gear Supply Co.	May 4		n/10 EOM	83
5	Received payment less discount and return	Knox Co.	Apr. 28		n/10 EOM	?
8	Paid inv. less 2 % discount and May 3 return	Peyton Products	Apr. 29	3411		?
9	Sold office supplies for cash at cost					350
10	Purchased office equipment on credit	Gear Supply Co.	May 10		n/10 EOM	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.	Gear Supply Co.	May 10			854
15	Check issued for sales salaries	Payroll		3412		5,320
	Check issued for office salaries	Payroll		3412		3,150
15	Cash sales for first half of month (cost $38,200)					59,220
16	Sold merchandise on credit (cost $1,890)	Hensel Company	8786		2/10, n/60	3,990
17	Purchased merchandise on credit	Fink Corp.	May 14		2/10, n/60	13,650
19	Paid invoice less discount	Garcia, Inc.	May 10	3413		?
22	Sold merchandise on credit (cost $4,990)	Lee Services	8787		2/10, n/60	6,850
23	Paid invoice less discount	Fink Corp.	May 14	3414		?
24	Purchased merchandise on credit	Gear Supply Co.	May 23		n/10 EOM	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)	Crane Corp.	8788		2/10, n/60	14,210
26	Paid May electric bill	Perennial Power		3415		1,283
29	Issued check to owner for personal use	Jenny Eureka		3416		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