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 with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 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 Number 3410 to S&P Management Company in payment of the May rent for $3,730. Charge 52,972 to Rent Expense-Selling Space, and charge $758 to Rent Expense-Office Space. Une two lines to record the transaction. ) May 2 (a) Sold merchandise on credit to Hensel Company, Invoice Number 8785, for $6,300 (cost is $4,500). May 2 (b) Issued an allowance (price reduction) of $185 to Knox Company for merchandise sold on Apr 11 28. The total selling price (gross) was $4,735. May 3 Issued a refund of $802 to Payton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. May 4 Purchased the following on credit from Gear Supply Company I merchandise, $37,076; store supplies, $5781 and office supplies, $85. Invoice dated May 4, terms n/30. May 5 Received payment from Knox Company for the balance from the April 28 ($4,550) male loss the May 2 return and the $91 discount. May 8 Issued Check Number 3411 to Peyton Products to pay for the $7,108 of merchandise purchased on April 29 los the May 3 return and the $130 dincount. May 9 Sold store supplies (noninventory) to the business next door at their cost of $356 cash. Hint Enter "Store Supplies only in the Account Credited column. May 10 Purchased $4,086 of office equipment on credit from Gear Supply Company, torna n/30. May 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $126. May 11 (b) Purchased $9,000 of merchandise from Garcia, Incorporated, terma 2/10, n/30. May 12 Received a(n) $866 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount. May 15 (a) Issued Check Number 3412, payable to Payroll, in payment of sales salaries, $5,340, and office salaries, $3,170. May 15 (b) Cash sales for the first half of the month are $59,260 (cost is $38,240). These cash sales are recorded in the cash receipts journal on May 15. May 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. May 16 Sold merchandise on credit to Hensel Company, Invoice Number 8786, for $4,010 (cost is $1,910). May 17 Purchased $13,670 of merchandise from Pink Corporation, terns 2/10, n/60. May 19 Issued Check Number 3413 to Garcia, Incorporated, in payment of Its May 11 purchase less the discount of $186. May 22 Sold merchandise to Lee Services, Invoice Number 8787, for $6,870 (cost is $5,010), terms 2/10, n/60. May 23 Issued Check Number 3414 to Pink Corporation in payment of its May 17 purchase less the discount of $277. Purchased the following on credit from Gear Supply Company: merchandise, $8,160; store supplies, $650; and office supplies, $320. Terms n/30. May 25 Purchased $3,120 of merchandise from Peyton Products, terms 2/10, n/30. nu 6 Sold marchandise on credit to Crane Corporation, Invoice Number 8788, for $14,230 (cost is $8,270). May 24 selling price (gross) was $4,735. May 3 Issued 4 refund of $802 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. May 4 Purchased the following on credit from Gear Supply Companymerchandise, $37,076; store supplies, $578; and office supplies, $85. Invoice dated May 4, terma n/30. May 5 Received payment from Knox Company for the balance from the April 28 (54,550) sale less the May 2 return and the $91 discount. May 8 Issued Check Number 3411 to Peyton Products to pay for the $7,108 of merchandise purchased on April 29 less the May 3 return and the $1J0 discount. May 9 Sold store supplies (noninventory) to the business next door at their cost of $355 cash. Hint: Enter Store Supplies" only in the Account Credited column. May 10 Purchased $4,086 of office equipment on credit from Gear Supply Company, terns n/30. May 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $126. May 11 (b) Purchased $9,000 of merchandise from Garcia, Incorporated, terma 2/10, n/30. May 12 Received a(n) $866 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount. May 15 (a) Issued Check Number 3412, payable to Payroll, in payment of sales salaries, $5,340, and office salaries, $3,170. May 15 (b) Cash sales for the first half of the month are $59, 260 (cost is $38,240). These cash sales are recorded in the cash receipts journal on May 15. May 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totala at the end of the month to the general ledger accounts. May 16 Sold merchandise on credit to Hensel Company, Invoice Number 8786, for $4,010 (cost is $1,910). May 17 Purchased $13,670 of merchandise from Pink Corporation, terms 2/10, n/60. May 19 Issued Check Number 3413 to Garcia, Incorporated, in payment of its May 11 purchase less the discount of $186. May 22 Sold merchandise to Lee Services, Invoice Number 8787, for $6,870 (cost is $5,010), terns 2/10, 1/60. May 23 Issued Check Number 3414 to Pink Corporation in payment of its May 17 purchase less the discount of $277. May 24 Purchased the following on credit from Gear Supply Company: merchandise, $8.160; store supplies, $650; and office supplies, $320. Terms n/30. May 25 Purchased $3,120 of merchandise from Peyton Products, terms 2/10, n/30. May 26 (a) Sold merchandise on credit to Crane Corporation, Invoice Number 8788, for $14,230 (cost is $8,270). May 26 (b) Issued Check Number 3415 to Perennial Power in payment of the May electrie bill, $1,287. The owner of Colo Company, Jenny Colo, sed Check Number 3416 to withdraw $7.000 cash from the business for personal use. May 30 (a) Received payment from Lee Services for the May 22 sale less the discount of $139. May 30 (b) Issued Check Number 3417, payable to Payroll, in payment of sales salaries, $5,340, and office salaries, $3,170. May 31 (a) Cash sales for the last half of the month are $66,068 cost is 542,510). These cash sales are recorded in the cash receipts journal on May 31. May 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. May 29 Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases journal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Assume a perpetual inventory system. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 1D Req 1E Enter the transactions in a sales journal. SALES JOURNAL Date Account Debited Invoice Number Accounts Receivable Debit Sales Credit Cost of Goods Sold Debit Inventory Credit May 31 Totals Req 1A Req 1B Req 1C Req 10 Req 1E Enter the transactions in a purchases journal. PURCHASES JOURNAL Date Account Date of Involco Terms Accounts Payable Credit Inventory Debit Office Supplies Dabit Other Accounts Debit May 31 Totals Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 1D Req 1E Enter the transactions in a cash receipts journal. CASH RECEIPTS JOURNAL Date Account Credited Sales Cash Debit Discount Debit Accounts Other Receivable Sales Credit Accounts Credit Credit Cost of Goods Sold Debit Inventory Credit May 31 Totals Req 1A Reg 18 Reg 10 Reg 10 Regle Enter the transactions in a cash payments journal. (Enter the transactions in chronological order) CASH PAYMENTS JOURNAL Date Check Number Payee Account Debited Cash Credit Inventory Credit Other Accounts Dobit Accounts Payable Debit May 31 Totals Req 1A Req 1B Req 10 Req 1D Req 1E Enter the transactions in a general journal. View transaction list Journal entry worksheet 1 2 3 > Issued an allowance (price reduction) of $185 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,735. Note: Enter debits before credits. Date General Journal Debit Credit May 02 View general Journal Record entry Clear entry Req 1A Reg 1B Req 1C Reg 1D Regle Enter the transactions in a general journal. View transaction list Journal entry worksheet a Issued a refund of $802 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. Note: Enter debits before credits General Journal Debit Credit Date May 03 Record entry Clear entry View general Journal Req 1A Req 1B Req 1C Req 10 Req 1E Enter the transactions in a general journal. View transaction list Journal entry worksheet Record the expired insurance, $555. Note: Enter debits before credits. General Journal Debit Credit Date May 31 View general Journal Record entry Clear entry Req 2A Req 2B Req 2c Req 3A Req 3B Req 30 Req 4A Reg 431 Prepare and post adjusting and closing entries. Reg 42 View transaction list Journal entry worksheet
