4 con 9 Assume it is Monday, May 1, the first business day of the month, and you have just been hired as the accountant for Colo Company, which operates balances. During your first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 2/10, n/30 unless stated differently): May 1 Issued Check No. 3410 to SSP Management Co. In payment of the May rent for $3,790. Charge $2,984 to Rent Expense-Selling Space, and charge $806 to Rent Expense-Office Space. (Use two lines to record the transaction.) 2 (a) Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6.900 (cost is $4.900), 2) Issued an allowance (price reduction) of $215 to Knox Co. for merchandise sold on April 28. The total selling price (gross) was 54,765. 3 Issued a refund of $814 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. Purchased the following on credit from Gear Supply Co.: merchandise, $37,088; store supplies, $500, and office supplies, 901. Invoice dated May Received payment from Knox Co. for the balance from the April 28 (54,550) sale less the May 2 retum and the $91 discount B Issued Check No. 3411 to Peyton Products to pay for the $7,138 of merchandise purchased on April 29 less the May 3 retum and the S142 discount. Sold store supplies (noninventory) to the merchant next door at their cost of $374 cash. 10 Purchased $4,122 of office equipment on credit from Gear Supply Co., terms 1/10 EOM. 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $138. 11 (b) Purchased 59,600 of merchandise from Garcia, Inc., terms 2M0, 1/30 12 Received a $902 price reduction from Gear Supply Co. for the return of office equipment received on May 10. Colo debited accounts payable by that amount 15 (a) Issued Check No. 3412, payable to Payroll, In payment of sales salaries, $5,400, and office salaries, $3.230. 15 (6) Cash sales for the first half of the month are $59.380 (cost is $38,360). These cash sales are recorded in the cash receipts Journal on May 15. 15 (C) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts 16 Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $4,070 (cost is $1,970). 17 Purchased $13.730 of merchandise from Fink Corp., torms 2/10, 160. 19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 11 purchase less the discount of $216. 22 Sold merchandise to Lee Services, Involce No. 8787 for $6,930 (cost is $5,070). terms 2/10, 1/60. 23 Issued Check No. 3414 to Fink Corp. In payment of its May 17 purchase less the discount of $289. 24 Purchased the following on credit from Gear Supply Co.: merchandise, $8,280; store supplies, 5710; and office supplies, $440. Terms 1/10 EOM. 25 Purchased $3,240 of merchandise from Peyton Products, terms 2/10, 1/30. 26 (a) Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,290 (cost is $8,300) 26 (b) Issued Check No. 3415 to Perennial Power in payment of the May electric bil, $1.299 29 The owner of Colo Company, Jenny Coloured Check No. 3416 to withdraw 57,000 cash from the business for personal use. 30 (a) Received payment from Lee Services for the May 22 sale less the discount of $145. 30 (b) Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,400, and office salaries, $3,230. 31 (a) Cash sales for the last half of the month are $66,116 (cost is $42,540). These cash sales are recorded in the cash receipts journal on May 31. 31 (b) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts, Foot and crossfoot the journals and make the month-end postings. Assume a perpetual inventory system. Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases joumal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-o, Enter the transactions in a general journal. Req IA Reg 1B Reg 10 Reg 1D Reg 1 Enter the transactions in a sales journal. SALES JOURNAL Date Account Debited Invoice Number Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. May 31 Totals SReg 1A Rog 18 2a. Complete the work sheet using the following information for accounting adjustments. Prepare and post adjusting and closing entries. a. Expired insurance, $561. b. Ending store supplies inventory, $2,640 c. Ending office supplies inventory, $512 d. Depreciation of store equipment. $575 a. Depreciation of office equipment, $337 2-b. Prepare all necessary ledgers for accounting adjustments 2-c. Prepare a work sheet for the month ended May 31. J-a. Prepare a May multiple-step Income statement. 3-b. Prepare a May statement of owner's equity. 3-c. Prepare a May 31 classified balance sheet 4-a. Prepare a post-closing trial balance. 461. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable. 4-b2. Prove the accuracy of subsidiary lodgers by preparing schedules of accounts payable. Req 2A Reg 20 Req Reg 28 Req 3B Reg 431 Req 3C Req 4A Req 482 Prepare and post adjusting and closing entries. View transactionist Journal entry worksheet Record the expired insurance, $561. Note: Enter debits before credits Date General Journal Debit Credit May 31 Clear entry Viow goneral Journal