Student Name:

Class:
Problem 07-05A

CHOI ENTERPRISES
Sales Journal
Cost of Goods
Inv. Trans. A/R Debit Sold Debit
Date Account Debited No. No. Sales Credit Inventory Credit
Dec. 6 Marge Craig 913 3
12 Hanna Seppa 914 4
15 Bo Brown 915 5
16 Hanna Seppa 916 6
24 Shilo Jones 917 7
31 Totals

CHOI ENTERPRISES
Purchases Journal
Accounts Office Other
Date of Trans. Payable Purchases Supplies Accounts
Date Account Invoice Terms No. Credit Debit Debit Debit
Dec. 2 Funk Company 12/2 2/10, n/60 2
5 KK's Supply Co. 12/3 n/10 EOM 3
15 Funk Company 12/15 2/10, n/60 4
15 Crossland Company 12/15 2/10, n/60 5
17 KK's Supply Co. 12/16 n/10 EOM 6
21 Store Equip./KK's Supply Co. 12/21 n/10 EOM 7
26 Crossland Company 12/25 2/10, n/60 8
31 Totals
Student Name:
Class:
Problem 07-05A

CHOI ENTERPRISES
Cash Receipts Journal

Sales Accounts Other COGS

Trans. Cash Discount Recv. Sales Accounts Debit
Date Account Cr. Explanation No. Debit Debit Credit Credit Credit Inv. Credit
Dec. 2 Shilo Jones Invoice 11/23 3
15 Sales Cash sales 4
15 Marge Craig Invoice 12/6 5
22 Hanna Seppa Invoice 12/12 6
25 Bo Brown Invoice 12/15 7
29 Office Supplies Sold supplies 8
31 Sales Cash sales 9
31 Totals

CHOI ENTERPRISES
Cash Disbursements Journal

Other Accts.
Check Account Trans. Cash Inventory Accts. Pay.
Date No. Payee Debited No. Credit Credit Debit Debit
Dec. 2 619 Omni Realty Co. Rent Expense 4
6 620 Fireside Company Fireside Company 5
12 621 Funk Company Funk Company 6
15 622 Jamie Inman Sales Salaries Exp. 7
23 623 Crossland Co. Crossland Co. 8
24 624 Funk Company Funk Company 9
30 625 Ken Choi Ken Choi, Withdr. 10
31 626 Jamie Inman Sales Salaries Exp. 11
31 627 Access Elec. Co. Utilities Expense 12
31 Totals
Student Name:
Class:
Problem 07-05A

CHOI ENTERPRISES
General Journal

Trans.
Date Description No. Debit Credit
Dec. 4 Accounts Payable-Fireside Company 2
Inventory

9 Sales Returns and Allowances 3

Accounts Receivable-Marge Craig

17 Accounts Payable-Funk Company 4

Inventory

18 Accounts Payable-KK's Supply Co. 5

Office Supplies

20 Sales Returns and Allowances 6

Accounts Receivable-Bo Brown

CHOI ENTERPRISES
General Ledger

Cash Account No. 101

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance
Dec. 31 CRJ
31 CDJ

Accounts Receivable Account No. 106

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance
Dec. 9 GJ3
20 GJ6
31 SJ
31 CRJ

Merchandise Inventory Account No. 119

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance
Dec. 4
Dec. 17
Dec. 31 CDJ
Dec. 31 PJ
Dec. 31 SJ
Dec. 31 CRJ

Office Supplies Account No. 124

Trans.
Student Name:
Class:
Problem 07-05A

Date Item no. Debit Credit Balance

Nov. 30 Balance
Dec. 18 GJ5
29 CR8
31 PJ6

Store Supplies Account No. 125

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

Store Equipment Account No. 165

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance
Dec. 21 PJ7

Accumulated Depr. - Store Equipment Account No. 166

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

Accounts Payable Account No. 201

Trans.
Date Item no. Debit Credit Balance
Nov. 30 Balance
Dec. 4 GJ2
17 GJ4
18 GJ5
31 PJ
31 CDJ

Ken Choi, Capital Account No. 308

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

Ken Choi, Withdrawals Account No. 318

Trans.
Date Item no. Debit Credit Balance
Dec. 30 CD10

Sales Account No. 413

Trans.
Date Item no. Debit Credit Balance
Dec. 31 SJ
31 CRJ
Student Name:
Class:
Problem 07-05A

Sales Returns and Allowances Account No. 414

Trans.
Date Item no. Debit Credit Balance
Dec. 31 GJ3
31 GJ6

Sales Discounts Account No. 415

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

Cost of Goods Sold Account No. 502

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

Sales Salaries Expense Account No. 621

Trans.
Date Item no. Debit Credit Balance
Dec. 15 CD7
31 CD11

Rent Expense Account No. 640

Trans.
Date Item no. Debit Credit Balance
Dec. 2 CD4

Utilities Expense Account No. 690

Trans.
Date Item no. Debit Credit Balance
Dec. 31 CD12

CHOI ENTERPRISES
Accounts Receivable Ledger

Marge Craig
Trans.
Date Item no. Debit Credit Balance
Dec. 6 SJ3
9 GJ3
15 CR5

Hanna Seppa
Trans.
Date Item no. Debit Credit Balance
Dec. 12 SJ4
16 SJ6
22 CR6

Shilo Jones
Trans.
Student Name:
Class:
Problem 07-05A

Date Item no. Debit Credit Balance

Nov. 23
Dec. 2 CR3
24 SJ7

Bo Brown
Trans.
Date Item no. Debit Credit Balance
Dec. 15 SJ5
20 GJ6
25 CR7

CHOI ENTERPRISES
Accounts Payable Ledger

Fireside Company
Trans.
Date Item no. Debit Credit Balance
Nov. 28
Dec.4 GJ2
6 CD5

KK's Supply Company

Trans.
Date Item no. Debit Credit Balance
Dec. 5 PJ3
17 PJ6
18 GJ5
21 PJ7

Crossland Company
Trans.
Date Item no. Debit Credit Balance
Dec. 15 PJ5
23 CD8
26 PJ8

Funk Company
Trans.
Date Item no. Debit Credit Balance
Dec. 2 PJ2
12 CD6
15 PJ4
17 GJ4
24 CD9
Student Name:
Class:
Problem 07-05A

CHOI ENTERPRISES
Trial Balance
December 31

Debit Credit
Cash
Accounts receivable
Merchandise inventory
Office supplies
Store supplies
Store equipment
Accumulated depreciation, store equipment
Accounts payable
Ken Choi, Capital
Ken Choi, Withdrawals
Sales
Sales returns and allowances
Sales discounts
Cost of goods sold
Sales salaries expense
Rent expense
Utilities expense
Totals

CHOI ENTERPRISES
Schedule of Accounts Receivable
December 31

Hanna Seppa
Shilo Jones
Total accounts receivable

CHOI ENTERPRISES
Schedule of Accounts Payable
December 31

KK's Supply Company

Crossland Company
Total accounts payable
Given Data P07-05A:

CHOI ENTERPRISES
Inv. No. Check
Date Description Name or Date No. Terms Amount
Dec. 16 Merchandise sold (cost $4,600) Hanna Seppa 916 2/10, n/30 $ 7,700
17 Received credit memo on returned merch. Funk Company Dec. 15 1,040
17 Purchased office supplies KK's Supply Company Dec. 16 n/10 EOM 615
18 Received credit memo on returned merch. KK's Supply Company Dec. 17 40
20 Issued credit memo on returned merch. Bo Brown Dec. 15 500
21 Purchased store equipment KK's Supply Company Dec. 21 n/10 EOM 6,700
22 Received payment less discount Hanna Seppa Dec. 12
23 Paid invoice less discount Crossland Company Dec. 15 623
24 Sold merchandise on credit (cost $600) Shilo Jones 917 1,200
24 Paid inv. less discount and return Funk Company Dec. 15 624
25 Received payment less discount and return Bo Brown Dec. 15
26 Purchased merchandise and invoice Crossland Company Dec. 25 2/10, n/60 8,100
29 Sold office supplies for cash at cost 50
30 Issued check to owner for personal use Ken Choi 625 3,500
31 Check issued for sales salaries Jamie Inman 626 2,020
31 Issued check for electric bill Access Electric Company 627 710
31 Cash sales for last half of month (cost $11,200) 29,600

Check figure: Trial balance totals $219,408

Student Name:
Class:
Problem 07-06A

BISHOP COMPANY
Sales Journal
COGS
Inv. Trans. Acct. Rec. Debit
Date Account Debited No. No. Sales Cr. Inv. Credit
Mar. 2 Min Cho 854 2
3 Lance Snow 855 3
10 Taylor Few 856 4
27 Taylor Few 857 5
28 Lance Snow 858 6
31 Total

BISHOP COMPANY
Purchases Journal
Accounts Office Other
Inv. Trans. Payable Purchases Supplies Accounts
Date Account Date Terms No. Credit Debit Debit Debit
Mar. 1 Soy Industries 3/3 2/15, n/30 3 42,600 42,600
3 Stacy Company 3/3 n/10 EOM 2 1,120 1,120
9 Office Equip./Tells Supply 3/9 n/10 EOM 4 20,850 20,850
14 The JW Company 3/13 2/10, n/30 5 31,625 31,625
16 Store Supplies/Stacy Co. 3/16 n/10 EOM 6 1,670 1,670
31 Totals 97,865 74,225 1,120 22,520
Correct! Correct! Correct! Correct!
Student Name:
Class:
Problem 07-06A

BISHOP COMPANY
Cash Receipts Journal

Sales Accounts Other COGS

Trans. Cash Discount Recv. Sales Accounts Debit
Date Account Cr. Explanation No. Debit Debit Credit Credit Credit Inv. Credit
Mar. 6 L.T. Notes Pay. Note to bank 2
12 Min Cho Invoice, 3/2 3
13 Lance Snow Invoice, 3/3 4
15 Sales Cash sales 5
20 Taylor Few Invoice, 3/10 6
31 Sales Cash sales 7
31 Totals

BISHOP COMPANY
Cash Disbursements Journal

Other Accts.
Check Account Trans. Cash Inventory Accts. Pay.
Date No. Payee Debited No. Credit Credit Debit Debit
Mar. 13 416 Soy Industries Soy Industries 2
15 417 Payroll Sales Salaries Exp. 3
23 418 The JW Co. The JW Company 4
31 419 Payroll Sales Salaries Exp. 5
31 Totals

BISHOP COMPANY
General Journal

Trans.
Date Description No. Debit Credit
Mar. 17 Accounts Payable-JW Co. 2
Inventory

19 Accounts Payable-Tells Supply 3

Office Equipment
Student Name:
Class:
Problem 07-06A

BISHOP COMPANY
General Ledger

Cash Account No. 101

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

Accounts Receivable Account No. 106

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

Inventory Account No. 119

Trans.
Date Item no. Debit Credit Balance
Mar. 1 Beginning balance
17 GJ2
31 PJ
31 CDJ
31 SJ
31 CRJ

Office Supplies Account No. 124

Trans.
Date Item no. Debit Credit Balance
Mar. 3 PJ2

Store Supplies Account No. 125

Trans.
Date Item no. Debit Credit Balance
Mar. 16 PJ6

Office Equipment Account No. 163

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

Accounts Payable Account No. 201

Trans.
Date Item no. Debit Credit Balance
Mar. 17 GJ2
19 GJ3
31 PJ
31 CDJ
Student Name:
Class:
Problem 07-06A

Long-Term Notes Payable Account No. 251

Trans.
Date Item no. Debit Credit Balance
Mar. 6 CR2

M.Bishop, Capital Account No. 308

Trans.
Date Item no. Debit Credit Balance
Mar. 15 Beginning balance

Sales Account No. 413

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

Sales Discounts Account No. 415

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

Cost of Goods Sold Account No. 502

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

Sales Salaries Expense Account No. 621

Trans.
Date Item no. Debit Credit Balance
Mar. 15 CD3
31 CD5
Student Name:
Class:
Problem 07-06A

BISHOP COMPANY
Accounts Receivable Ledger

Taylor Few
Trans.
Date Item no. Debit Credit Balance
Mar. 10 SJ4
20 CR6
27 SJ5

Min Cho
Trans.
Date Item no. Debit Credit Balance
Mar. 2 SJ2
12 CR3

Lance Snow
Trans.
Date Item no. Debit Credit Balance
Mar. 3 SJ3
13 CR4
28 SJ6

BISHOP COMPANY
Accounts Payable Ledger

Stacy Company
Trans.
Date Item no. Debit Credit Balance
Mar. 3 PJ2
16 PJ6

Soy Industries
Trans.
Date Item no. Debit Credit Balance
Mar. 5 PJ3
13 CD2

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

The JW Company
Trans.
Date Item no. Debit Credit Balance
Mar. 14 PJ5
17 GJ2
23 CD4

BISHOP COMPANY
Student Name:
Class:
Problem 07-06A

Trial Balance (Unadjusted)

March 31

Debit Credit
Cash
Accounts receivable
Inventory
Office supplies
Store supplies
Office equipment
Accounts payable
Long-term notes payable
M. Bishop, Capital
Sales
Sales discounts
Cost of goods sold
Sales salaries expense
Totals

BISHOP COMPANY
Schedule of Accounts Receivable
March 31

Taylor Few
Lance Snow
Total accounts receivable

BISHOP COMPANY
Schedule of Accounts Payable
March 31

Stacy Company
Tells Supply
Total accounts payable
Given Data P07-06A:

BISHOP COMPANY
Inv. No. Check
Date Description Name or Date No. Terms Amount
Mar. 1 Received merchandise and invoice Soy Industries Mar. 1 2/15, n/30 42,600
2 Merchandise sold (cost $7,900) Min Cho 854 2/10, n/30 15,800
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 9,200
6 Borrowed on long-term note payable Federal Bank 72,000
9 Purchased office equipment Tells Supply Mar. 9 n/10 EOM 20,850
10 Sold merchandise (cost $2,300) 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 Purchase merchandise JW Company Mar. 13 2/10, n/30 31,625
15 Check issued for sales salaries 417 15,900
15 Cash sales for first half of month (cost $138,000) 164,680
16 Purchased store supplies Stacy Company Mar. 16 n/10 EOM 1,670
17 Received credit memo on returned merch. JW Company 2,425
19 Received credit memo on returned merch. Tells Supply 630
20 Received payment less discount Taylor Few 856 2/10, n/30
23 Paid inv. less discount and credit memo JW Company Mar. 13 418 2/10, n/30
27 Merchandise sold (cost $6,220) Taylor Few 857 2/10, n/30 13,910
28 Merchandise sold (cost $2,280) Lance Snow 858 2/10, n/30 5,315
31 Check issued for sales salaries 419 15,900
31 Cash sales for second half of month (cost $16,820) 174,590

Check figure: Trial balance totals $738

Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
Sales Journal
AR Debit COGS
Inv. Trans. Sales Debit
Date Account Debited No. No. Credit Inv. Credit
May 2 Hensel Company 8785 83 6,100 4,100
16 Hensel Company 8786 84 3,990 1,890
22 Lee Services 8787 85 6,850 4,990
26 Crane Corp. 8788 86 14,210 8,230
31 Totals 31,150 19,210

^ Correct! ^Correct!
COLO COMPANY
Purchases Journal
Accounts Office Other
Inv. Trans. Payable Inventory Supplies Accounts
Date Account Date Terms No. Credit Debit Debit Debit
May 4 Store Supp./Gear Supp. 5/4 n/10, EOM 78 37,729 37,072 83 574
10 Off. Equip./Gear Supp. 5/10 n/10, EOM 79 4,074 4,074
11 Garcia, Inc. 5/10 n/30, n/30 80 880 8,800
17 Fink Corp. 5/14 2/10, n/60 81 13,650 13,650
24 Store Supp./Gear Supp. 5/24 n/10, EOM 82 9,030 8,120 280 630
25 Peyton Products 5/23 2/10, n/30 83 3,080 3,080
31 Totals 76,363 70,722 363 5,278

^ Correct! ^ Correct! ^ Correct! ^ Correct!

Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

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
May 5 Knox, Inc. Sale of April 28 81 4,459 91 4,550
9 Store Supplies Sold store supplies 82 350 350
11 Hensel Company Sale of May 2 83 5,978 122 6,100
15 Sales Cash sales, 84 59,220 59,220
May 1-15
30 Lee Services Sale of May 22 85 6,713 137 6,850
31 Sales Cash Sales, 86 66,052 66,052
May 16-31
31 Totals 142,772 350 17,500 125,272 350

^ Correct! ^ Correct! ^ Correct! ^ Correct! ^ Correct!

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 3410 S&P Mgmt. Co. Rent Exp., Selling 76 2,968 2,968
Rent Exp., Office 742 742
8 3411 Peyton Products Peyton Products 77 6,174 126 6,300
15 3412 Payroll Sales Salaries Exp. 78 5,320 5,320
Office Salaries Exp. 3,150 3,150
19 3413 Garcia, Inc. Garcia, Inc. 79 8,624 176 8,800
23 3414 Fink Corp. Fink Corp. 80 13,377 273 13,650
26 3415 Perennial Power Utilities Exp. 81 1,283 1,283
29 3416 Jenny Colo J. Colo, Withdrawals 82 7,000 7,000
30 3417 Payroll Sales Salaries Exp. 83 5,320 5,320
Office Salaries Exp. 3,150 3,150
Totals 57,108 575 28,933 28,750

^ Correct! ^ Correct! ^ Correct! ^ Correct!

Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
General Journal

Trans.
Date Description No. Debit Credit
May 2 Sales Returns and Allowances 65 175
Accounts Receivable-Knox, Inc. 175 «- Correct!
3 Accounts Payable-Peyton Products 66 798
Inventory 798 «- Correct!
12 Accounts Payable-Gear Supply Co. 67 854
Office Equipment 854 «- Correct!

Adjusting entries
May 31 Insurance Expense 68 553
Prepaid Insurance 553 «- Correct!
31 Store Supplies Expense 69 669
Store Supplies 669 «- Correct!
31 Office Supplies Expense 70 289
Office Supplies 289 «- Correct!
31 Depreciation Expense, Store Equip. 71 567
Accumulated Depr., Store Equip. 567 «- Correct!
31 Depreciation Expense, Office Equip. 72 329
Accumulated Depr., Office Equip. 329 «- Correct!

Closing entries
May 31 Income Summary 73 124,775
Sales Discounts 350 «- Correct!
Sales Returns and Allowances 175 «- Correct!
Cost of Goods Sold 99,910 «- Correct!
Depr. Expense, Office Equipment 329 «- Correct!
Depr. Expense, Store Equipment 567 «- Correct!
Office Salaries Expense 6,300 «- Correct!
Sales Salaries Expense 10,640 «- Correct!
Insurance Expense 553 «- Correct!
Rent Expense, Office Space 742 «- Correct!
Rent Expense, Selling Space 2,968 «- Correct!
Office Supplies Expense 289 «- Correct!
Store Supplies Expense 669 «- Correct!
Utilities Expense 1,283 «- Correct!
31 Sales 74 156,422
Income Summary 156,422 «- Correct!
31 Income Summary 75 31,647
J. Colo, Capital 31,647 «- Correct!
31 J. Colo, Capital 76 7,000
J. Colo, Withdrawals 7,000 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
General Ledger

Cash Account No. 101

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 50,247
May 31 CRJ 142,772 193,019
31 CDJ 57,108 135,911 «- Correct!

Accounts Receivable Account No. 106

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 4,725
May 2 JG65 175 4,550
31 SJ 31,150 35,700
31 CRJ 17,500 18,200 «- Correct!

Merchandise Inventory Account No. 119

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 220,080
May 31 GJ66 798 219,282
31 CDJ 575 218,707
31 PJ 70,722 289,429
31 CRJ 80,700 208,729
31 SJ 19,210 189,519 «- Correct!

Office Supplies Account No. 124

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 430
May 31 PJ 363 793
31 GJ70 289 504 «- Correct!

Store Supplies Account No. 125

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 2,447
May 4 PJ78 574 3,021
9 CR82 350 2,671
24 PJ82 630 3,301
31 GJ69 669 2,632 «- Correct!

Prepaid Insurance Account No. 128

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 3,318
May 31 GJ68 553 2,765 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

Office Equipment Account No. 163

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 22,470
May 10 PJ79 4,074 26,544
12 GJ67 854 25,690 «- Correct!

Accumulated Depreciation, Office Equipment Account No. 164

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 9,898
May 31 GJ72 329 10,227 «- Correct!

Store Equipment Account No. 165

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 38,920

Accumulated Depreciation, Store Equipment Account No. 166

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 17,556
May 31 GJ71 567 18,123 «- Correct!

Accounts Payable Account No. 201

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 7,098
May 3 GJ66 798 6,300
12 GJ67 854 5,446
31 PJ 76,363 81,809
31 CDJ 28,750 53,059 «- Correct!

Jenny Colo, Capital Account No. 301

Trans.
Date Item no. Debit Credit Balance
Apr. 30 Balance 308,085
May 31 GJ75 31,647 339,732
31 GJ76 7,000 332,732 «- Correct!

Jenny Colo, Withdrawals Account No. 302

Trans.
Date Item no. Debit Credit Balance
May 29 CD82 7,000 7,000
31 GJ76 7,000 0 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

Sales Account No. 413

Trans.
Date Item no. Debit Credit Balance
May 31 SJ 31,150 31,150
31 CRJ 125,272 156,422
31 GJ74 156,422 0 «- Correct!

Sales Returns & Allowances Account No. 414

Trans.
Date Item no. Debit Credit Balance
May 2 GJ65 175 175
31 GJ73 175 0 «- Correct!

Sales Discounts Account No. 415

Trans.
Date Item no. Debit Credit Balance
May 31 CRJ 350 350
31 GJ73 350 0 «- Correct!

Cost of Goods Sold Account No. 502

Trans.
Date Item no. Debit Credit Balance
May 31 S2 19,210 19,210
31 R2 80,700 99,910
31 G3 99,910 0 «- Correct!

Depreciation Expense, Ofc. Equipment Account No. 612

Trans.
Date Item no. Debit Credit Balance
May 31 GJ72 329 329
31 GJ73 329 0 «- Correct!

Depreciation Expense, Store Equipment Account No. 613

Trans.
Date Item no. Debit Credit Balance
May 31 GJ71 567 567
31 GJ73 567 0 «- Correct!

Office Salaries Expense Account No. 620

Trans.
Date Item no. Debit Credit Balance
May 15 CD78 3,150 3,150
30 CD83 3,150 6,300
31 GJ73 6,300 0 «- Correct!

Sales Salaries Expense Account No. 621

Trans.
Date Item no. Debit Credit Balance
May 15 CD78 5,320 5,320
30 CD83 5,320 10,640
31 GJ73 10,640 0 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

Insurance Expense Account No. 637

Trans.
Date Item no. Debit Credit Balance
May 31 GJ68 553 553
31 GJ73 553 0 «- Correct!

Rent Expense, Office Space Account No. 641

Trans.
Date Item no. Debit Credit Balance
May 1 CD76 742 742
31 GJ73 742 0 «- Correct!

Rent Expense, Selling Space Account No. 642

Trans.
Date Item no. Debit Credit Balance
May 1 CD76 2,968 2,968
31 GJ73 2,968 0 «- Correct!

Office Supplies Expense Account No. 650

Trans.
Date Item no. Debit Credit Balance
May 31 GJ70 289 289
31 GJ73 289 0 «- Correct!

Store Supplies Expense Account No. 651

Trans.
Date Item no. Debit Credit Balance
May 31 GJ69 669 669
31 GJ73 669 0 «- Correct!

Utilities Expense Account No. 690

Trans.
Date Item no. Debit Credit Balance
May 26 CD81 1,283 1,283
31 GJ73 1,283 0 «- Correct!

Income Summary Account No. 901

Trans.
Date Item no. Debit Credit Balance
May 31 GJ73 124,775 124,775
31 GJ74 156,422 (31,647)
31 GJ75 31,647 0 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
Accounts Receivable Ledger

Crane Corp.
Trans.
Date Item no. Debit Credit Balance
May 26 SJ86 14,210 14,210 «- Correct!

Hensel Company
Trans.
Date Item no. Debit Credit Balance
May 2 SJ83 6,100 6,100
11 CR83 6,100 0
16 SJ84 3,990 3,990 «- Correct!

Knox, Inc.
Trans.
Date Item no. Debit Credit Balance
Apr. 28 S2 4,725 4,725
May 2 GJ65 175 4,550
5 CR81 4,550 0 «- Correct!

Lee Services
Trans.
Date Item no. Debit Credit Balance
May 22 SJ85 6,850 6,850
30 CR85 6,850 0 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
Accounts Payable Ledger

Fink Corp.
Trans.
Date Item no. Debit Credit Balance
May 17 PJ81 13,650 13,650
23 CD80 13,650 0 «- Correct!

Garcia, Inc.
Trans.
Date Item no. Debit Credit Balance
May 11 PJ80 8,800 8,800
19 CD79 8,800 0 «- Correct!

Peyton Products
Trans.
Date Item no. Debit Credit Balance
Apr. 29 PJ 7,098 7,098
May 3 JG66 798 6,300
8 CD77 6,300 0
25 PJ83 3,080 3,080 «- Correct!

Gear Supply Co.

Trans.
Date Item no. Debit Credit Balance
May 4 PJ78 37,729 37,729
10 PJ79 4,074 41,803
12 GJ67 854 40,949
24 PJ82 9,030 49,979 «- Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
Work Sheet
For Month Ended May 31, 2005

Unadjusted Adjusted Income

Trial Balance Adjustments Trial Balance Statement
Account Debit Credit Debit Credit Debit Credit Debit Credit
Cash 135,911 135,911
Accounts receivable 18,200 18,200
Merchandise inventory 189,519 189,519
Office supplies 793 (c)289 504
Store supplies 3,301 (b) 669 2,632
Prepaid insurance 3,318 (a) 553 2,765
Office equipment 25,690 25,690
Accum. depr., office equip. 9,898 (e)329 10,227
Store equipment 38,920 38,920
Accum. depr., store equip. 17,556 (d) 567 18,123
Accounts payable 53,059 53,059
J. Colo, Capital 308,085 308,085
J. Colo, Withdrawals 7,000 7,000
Sales 156,422 156,422 156,422
Sales discounts 350 350 350
Sales returns and allowances 175 175 175
Cost of goods sold 99,910 99,910 99,910
Depr. expense, office equip. (e)329 329 329
Depr. expense, store equip. (d) 567 567 567
Office salaries expense 6,300 6,300 6,300
Sales salaries expense 10,640 10,640 10,640
Insurance expense (a) 553 553 553
Rent exp., office space 742 742 742
Rent exp., selling space 1,968 2,968 2,968
Office supplies expense (c)289 289 289
Store supplies expense (b) 669 669 669
Utilities expense 1,283 1,283 1,283
Totals 545,020 545,020 2,407 2,407 545,916 545,916 124,775 156,422
Net income 31,647
Totals ^Correct! ^Correct! ^Correct! ^Correct! Correct! Correct! 156,422 156,422

^ Correct! ^ Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
Income Statement
For Month Ended May 31, 2005

Revenue:
Sales $ 156,422
Less: Sales discounts $ 350
Sales returns and allowances 175 525
Net sales $ 155,897
Less: Cost of goods sold 99,910
Gross profit on sales $ 55,987
Operating expenses:
Selling expenses:
Depreciation expense, store equipment $ 567
Sales salaries expense 10,640
Rent expense, selling space 2,968
Store supplies expense 669
Total selling expenses $ 14,844
General and administrative expenses:
Depreciation expense, office equipment $ 329
Office salaries expense 6,300
Insurance expense 553
Rent expense, office space 742
Office supplies expense 289
Utilities expense 1,283
Total general and administrative expenses 9,496
Total operating expenses 24,340
Net income $ 31,647 «-Correct!

COLO COMPANY
Statement of Owner's Equity
For Month Ended May 31, 2005

Jenny Colo, Capital, April 30, 2005 $308,085

Plus: Net income 31,647
Total $339,732
Less: Withdrawals by owner (7,000)
Jenny Colo, Capital, May 31, 2005 $332,732 «-Correct!
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

COLO COMPANY
Balance Sheet
May 31, 2005

Assets
Current assets:
Cash $135,911
Accounts receivable 18,200
Merchandise inventory 189,519
Office supplies 504
Store supplies 2,632
Prepaid insurance 2,765
Total current assets $349,531 «- Correct!
Plant assets:
Office equipment 25,690
Less accumulated depreciation 10,227 15,463 «- Correct!
Store equipment 38,920
Less accumulated depreciation 18,123 20,797 «- Correct!
Total plant assets 36,260 «- Correct!
Total assets $385,791 «- Correct!

Liabilities
Current liabilities:
Accounts payable $53,059 «- Correct!

Owner's Equity
Jenny Colo, Capital 332,732 «- Correct!
Total liabilities and equity $385,791 «- Correct!

COLO COMPANY
Post-Closing Trial Balance
May 31, 2005

Debit Credit
Cash $135,911
Accounts receivable 18,200
Merchandise inventory 189,519
Office supplies 504
Store supplies 2,632
Prepaid insurance 2,765
Office equipment 25,690
Accum. depr., office equipment $10,277
Store equipment 38,920
Accum. depr., store equipment 18,123
Accounts payable 53,059
Jenny Colo, Capital 332,732
Totals $414,141 $414,141

^ Correct! ^ Correct!
COLO COMPANY
Schedule of Accounts Receivable
Student Name: Cathy Bandelow
Class: ACC 225
Problem 07C

May 31, 2005

Crane Corp. $14,210

Hensel Company 3,990
Total accounts receivable $18,200 «- Correct!

COLO COMPANY
Schedule of Accounts Payable
May 31, 2005

Peyton Products $3,080

Gear Supply Co. 49,979
Total accounts payable $53,059 «- Correct!
MPANY
heet
May 31, 2005

Balance Sheet
& Statement
of Owner's Equity
Debit Credit
135,911
18,200
189,519
504
2,632
2,765
25,690
10,227
38,920
18,123
53,059
208,085
7,000

421,141 389,494
31,647
421,141 421,141

^ Correct! ^ Correct!
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 merch. Knox, Inc. Apr. 28 175
Total selling price (gross) Knox, Inc. Apr. 28 4,725
3 Received credit memo on returned merch. 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, Inc. Apr. 28 n/10 EOM ?
8 Paid inv. less 2 % discount and May 3 return Peyton Products Apr. 29 3411 ?
9 Sold store 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 merch. 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 April electric bill Perennial Power 3415 1,283
29 Issued check to owner for personal use Jenny Colo 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. Estimated depreciation of store equipment 567
e. Estimated depreciation of office equipment 329