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, 1/30 unless stated differently): May 1 Issued Check Number 3410 to 56P Management Company in payment of the May rent for $3,720. Charge $2,970 to Rent Expense-Selling Space, and charge $750 to Rent Expense-Office Space. (Use two lines to record the transaction.) May 2 (a) Sold merchandise on credit to Hensel Company, Invoice Number 8785, for $6,200 (cost is $4,200). May 2 (b) Issued an allowance (price reduction) of $180 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,730. May 3 Issued a refund of $Bee 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 fron Gear Supply Company: nerchandise, $37,074; store supplies, $576; and office supplies, $84. Invoice dated May 4, terns 130. May 5 Received payment from Knox Company for the balance from the April 28 (54,558) sale less the May 2 return and the $91 discount. May Issued Check Number 3411 to Peyton Products to pay for the $7.103 of merchandise purchased on April 29 less the May 3 return and the $128 discount. Sold store supplies (non inventory) to the business next door at their cost of $353 cash. Hints Enter Store Supplies only in the Account credited column May 10 Purchased $4,080 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 3124. May 11 (b) Purchased $8.900 of merchandise from Garcia, Incorporated, terms 2/10, 1/30. May 12 Received a(n) 5860 price reduction from Gear Supply Company for the return of office equipoent 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, $5,330, and office salaries, $3,160. May 15 () Cash sales for the first half of the month are $59,240 (cost is $38,220). 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 54,000 cost is $1,900). May 17 Purchased $13,660 of merchandise from Fink Corporation, terms 2/10, 1/60. May 9 May 17 Purchased $13,660 of merchandise from Fink Corporation, terns 2/16, 1/60. May 19 Issued Check Number 3413 to Garcia, Incorporated, in payment of its May 11 purchase less the discount of $181. May 22 Sold merchandise to Lee Services, Invoice Number 8787, for $6,860 (cost is $5,000), terns 2/10, 1/60 May 23 Issued Check Number 3474 to Fink Corporation in paynent of its May 17 purchase less the discount of $275. May 24 Purchased the following on credit fron Gear Supply Company: merchandise, $8,140; store supplies, 5640; and office supplies, $300. Terns n/30. May 25 Purchased $3,100 of merchandise from Peyton Products, terns 2/10, 1/30. May 26 (a) Sold merchandise on credit to Crane Corporation, Invoice Number 8788, for $14,220 (cost is $0,250). May 26 (6) Issued Check Number 3415 to Perennial Power in payment of the May electric bill, 51,285. May 20 The owner of Colo Company, Jenny Colo, used Check Number 3416 to withdraw 57,000 cash from the business for personal use. May 30 (a) Received payment from Lee Services for the May 22 sale tess the discount of $138. May 30 (b) Issued Check Number 3417, payable to Payroll, in payment of sales salaries, 55,330, and office salaries, $3,160. May 31 (a) Cash sales for the last half of the month are $66.60 (cost is $42,505). 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 sonth to the general ledger accounts. Foot and crosstoot the journals and make the month-end postings. 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 Req 1A Heq 18 Req 1C Reg 1D Reg 1E Enter the transactions in a purchases journal. PURCHASES JOURNAL Date Account Accounts Payable Credit $ 37,074 Inventory Debit Office Supplies Debit $ 84 Other Accounts Debit May 04 May 10 (May 1 May 17 May 24 May 25 Store supplies/Gear Supply Office equipment Gear Supply Garcia, Incorporated Fink Corporation Store supplies Gear Supply Peyton products Date of Terms Involce 5/1 130 5/10/30 541 2/10, 1/30 5/17 2110, 1/60 5/24 1/30 5125 2/10, 1/30 $ 37.074 $ os 84 $ 0 Totals May 31 Reg 1A Reg 18 LLLLLLLLL Req 1c Req 10 Reg 1E Enter the transactions in a cash receipts journal. CASH RECEIPTS JOURNAL Date Account Credited Cash Debit Sales Discount Debit Accounts Other Receivable Sales Credit Accounts Credit Credit Cost of Goods Sold Debit Inventory Credit May 31 Totals $ $ 0 $ 0 $ 0 $ $ 0 (Reg 18 Reg 10 > Req 1A Reg 18 Reg 1c Req 1D Reg 1E Enter the transactions in a cash payments Journal. (Enter the transactions in chronological order.) CASH PAYMENTS JOURNAL Check Number Date Account Debited Payee Cash Credit Accounts Payable Debit Inventory Credit Other Accounts Debit $ 0 1 OS May 31 Totals Journal entry worksheet Issued an allowance (price reduction) of $180 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,730. Note: Enter debits before credits. Data Debit General Journal Credit May 02 Record entry Clear entry View general Journal Journal entry worksheet Received a $860 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount. Note: Enter debits before credits. Date General Journal Debit Credit May 12 Record entry Clear entry View general Journal 2-a. Complete the work sheet using the following information for accounting adjustments. Prepare and post adjusting and closing entries a. Expired insurance, $554 b. Ending store supplies inventory. $2,633, c. Ending office supplies inventory, $505. d. Depreciation of store equipment. $568. e. Depreciation of office equipment. $330. 2-b. Prepare all necessary ledgers for accounting adjustments 2-c. Prepare a work sheet for the month ended May 31 3-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. 4 b1. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable. 4-b2. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts payable. Journal entry worksheet Record the ending office supplies inventory, $505. Note: Enter debits before credits Date General Journal Debit Credit May 31 Record entry Clear entry View general Journal Journal entry worksheet Record the depreciation of store equipment, $568. Note: Enter debits before credits Debit Credit Date General Journal May 31 Clear entry View general Journal Record entry 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, 1/30 unless stated differently): May 1 Issued Check Number 3410 to 56P Management Company in payment of the May rent for $3,720. Charge $2,970 to Rent Expense-Selling Space, and charge $750 to Rent Expense-Office Space. (Use two lines to record the transaction.) May 2 (a) Sold merchandise on credit to Hensel Company, Invoice Number 8785, for $6,200 (cost is $4,200). May 2 (b) Issued an allowance (price reduction) of $180 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,730. May 3 Issued a refund of $Bee 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 fron Gear Supply Company: nerchandise, $37,074; store supplies, $576; and office supplies, $84. Invoice dated May 4, terns 130. May 5 Received payment from Knox Company for the balance from the April 28 (54,558) sale less the May 2 return and the $91 discount. May Issued Check Number 3411 to Peyton Products to pay for the $7.103 of merchandise purchased on April 29 less the May 3 return and the $128 discount. Sold store supplies (non inventory) to the business next door at their cost of $353 cash. Hints Enter Store Supplies only in the Account credited column May 10 Purchased $4,080 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 3124. May 11 (b) Purchased $8.900 of merchandise from Garcia, Incorporated, terms 2/10, 1/30. May 12 Received a(n) 5860 price reduction from Gear Supply Company for the return of office equipoent 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, $5,330, and office salaries, $3,160. May 15 () Cash sales for the first half of the month are $59,240 (cost is $38,220). 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 54,000 cost is $1,900). May 17 Purchased $13,660 of merchandise from Fink Corporation, terms 2/10, 1/60. May 9 May 17 Purchased $13,660 of merchandise from Fink Corporation, terns 2/16, 1/60. May 19 Issued Check Number 3413 to Garcia, Incorporated, in payment of its May 11 purchase less the discount of $181. May 22 Sold merchandise to Lee Services, Invoice Number 8787, for $6,860 (cost is $5,000), terns 2/10, 1/60 May 23 Issued Check Number 3474 to Fink Corporation in paynent of its May 17 purchase less the discount of $275. May 24 Purchased the following on credit fron Gear Supply Company: merchandise, $8,140; store supplies, 5640; and office supplies, $300. Terns n/30. May 25 Purchased $3,100 of merchandise from Peyton Products, terns 2/10, 1/30. May 26 (a) Sold merchandise on credit to Crane Corporation, Invoice Number 8788, for $14,220 (cost is $0,250). May 26 (6) Issued Check Number 3415 to Perennial Power in payment of the May electric bill, 51,285. May 20 The owner of Colo Company, Jenny Colo, used Check Number 3416 to withdraw 57,000 cash from the business for personal use. May 30 (a) Received payment from Lee Services for the May 22 sale tess the discount of $138. May 30 (b) Issued Check Number 3417, payable to Payroll, in payment of sales salaries, 55,330, and office salaries, $3,160. May 31 (a) Cash sales for the last half of the month are $66.60 (cost is $42,505). 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 sonth to the general ledger accounts. Foot and crosstoot the journals and make the month-end postings. 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 Req 1A Heq 18 Req 1C Reg 1D Reg 1E Enter the transactions in a purchases journal. PURCHASES JOURNAL Date Account Accounts Payable Credit $ 37,074 Inventory Debit Office Supplies Debit $ 84 Other Accounts Debit May 04 May 10 (May 1 May 17 May 24 May 25 Store supplies/Gear Supply Office equipment Gear Supply Garcia, Incorporated Fink Corporation Store supplies Gear Supply Peyton products Date of Terms Involce 5/1 130 5/10/30 541 2/10, 1/30 5/17 2110, 1/60 5/24 1/30 5125 2/10, 1/30 $ 37.074 $ os 84 $ 0 Totals May 31 Reg 1A Reg 18 LLLLLLLLL Req 1c Req 10 Reg 1E Enter the transactions in a cash receipts journal. CASH RECEIPTS JOURNAL Date Account Credited Cash Debit Sales Discount Debit Accounts Other Receivable Sales Credit Accounts Credit Credit Cost of Goods Sold Debit Inventory Credit May 31 Totals $ $ 0 $ 0 $ 0 $ $ 0 (Reg 18 Reg 10 > Req 1A Reg 18 Reg 1c Req 1D Reg 1E Enter the transactions in a cash payments Journal. (Enter the transactions in chronological order.) CASH PAYMENTS JOURNAL Check Number Date Account Debited Payee Cash Credit Accounts Payable Debit Inventory Credit Other Accounts Debit $ 0 1 OS May 31 Totals Journal entry worksheet Issued an allowance (price reduction) of $180 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,730. Note: Enter debits before credits. Data Debit General Journal Credit May 02 Record entry Clear entry View general Journal Journal entry worksheet Received a $860 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount. Note: Enter debits before credits. Date General Journal Debit Credit May 12 Record entry Clear entry View general Journal 2-a. Complete the work sheet using the following information for accounting adjustments. Prepare and post adjusting and closing entries a. Expired insurance, $554 b. Ending store supplies inventory. $2,633, c. Ending office supplies inventory, $505. d. Depreciation of store equipment. $568. e. Depreciation of office equipment. $330. 2-b. Prepare all necessary ledgers for accounting adjustments 2-c. Prepare a work sheet for the month ended May 31 3-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. 4 b1. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable. 4-b2. Prove the accuracy of subsidiary ledgers by preparing schedules of accounts payable. Journal entry worksheet Record the ending office supplies inventory, $505. Note: Enter debits before credits Date General Journal Debit Credit May 31 Record entry Clear entry View general Journal Journal entry worksheet Record the depreciation of store equipment, $568. Note: Enter debits before credits Debit Credit Date General Journal May 31 Clear entry View general Journal Record entry