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 companys 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 No. 3410 to S&P Management Co. in payment of the May rent for $3,870. Charge $3,000 to Rent ExpenseSelling Space, and charge $870 to Rent ExpenseOffice Space. (Use two lines to record the transaction.)
		2		(a)	Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $7,700 (cost is $5,700).
		2		(b)	Issued an allowance (price reduction) of $255 to Knox Co. for merchandise sold on April 28. The total selling price (gross) was $4,805.
		3			Issued a refund of $830 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount.
		4			Purchased the following on credit from Gear Supply Co.: merchandise, $37,104; store supplies, $606; and office supplies, $99. Invoice dated May 4, terms n/10 EOM.
		5			Received payment from Knox Co. for the balance from the April 28 ($4,550) sale less the May 2 return and the $91 discount.
		8			Issued Check No. 3411 to Peyton Products to pay for the $7,178 of merchandise purchased on April 29 less the May 3 return and the $158 discount.
		9			Sold store supplies (noninventory) to the merchant next door at their cost of $398 cash.
		10			Purchased $4,170 of office equipment on credit from Gear Supply Co., terms n/10 EOM.
		11		(a)	Received payment from Hensel Company for the May 2 sale less the discount of $154.
		11		(b)	Purchased $10,400 of merchandise from Garcia, Inc., terms 2/10, n/30.
		12			Received a $950 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, $5,480, and office salaries, $3,310.
		15		(b)	Cash sales for the first half of the month are $59,540 (cost is $38,520). 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 $4,150 (cost is $2,050).
		17			Purchased $13,810 of merchandise from Fink Corp., terms 2/10, n/60.
		19			Issued Check No. 3413 to Garcia, Inc., in payment of its May 11 purchase less the discount of $256.
		22			Sold merchandise to Lee Services, Invoice No. 8787, for $7,010 (cost is $5,150), terms 2/10, n/60.
		23			Issued Check No. 3414 to Fink Corp. in payment of its May 17 purchase less the discount of $305.
		24			Purchased the following on credit from Gear Supply Co.: merchandise, $8,440; store supplies, $790; and office supplies, $600. Terms n/10 EOM.
		25			Purchased $3,400 of merchandise from Peyton Products, terms 2/10, n/30.
		26		(a)	Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,370 (cost is $8,550).
		26		(b)	Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,315.
		29			The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use.
		30		(a)	Received payment from Lee Services for the May 22 sale less the discount of $153.
		30		(b)	Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,480, and office salaries, $3,310.
		31		(a)	Cash sales for the last half of the month are $66,180 (cost is $42,580). 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.

I am unsure if the information in the beginning is completely correct, but I gave it my best shot, help is very appreciated.

SALES JOURNAL Date Account Debited Invoice Number 18785 May 02 May 16 May 22 May 26 4.150 Accounts Cost of Goods Receivable Dr. Sold Dr Sales Cr. Inventory Cr. $ 7,700 $ 5,700 2,050 7,010 5,150 8,550 'Hensel Company Hensel Company Lee services Crane Corp 8786 8787 18788 14,370 May 31 Totals S 33,230 $ 21,450 PURCHASES JOURNAL Date Account Date of Invoice Terms 1514 May 04 May 10 May 11 5/10 > Office Other Accounts Inventory Supplies Accounts Payable Cr. Dr. Dr. Dr. $ 37,104 $ 36,399 S 99 $ 606 4,170 4,170 10,400 10,400 13,810 13,810 8,440 7,050 600 790 3,400 3.400 Store supplies/Gear Supply Office equipment/Gear Supply Garcia, Inc. Fink Corp. Store supplies/Gear Supply Peyton products 5/10 n/10, EOM n/10, EOM 2/10, 1/30 2/10, n/60 n/10, EOM 2/10, n/30 May 17 5/17 > May 24 May 25 5/24 5/25 > > Totals May 31 $ 77,324 S 71,059 s 699 $ 5,566 CASH RECEIPTS JOURNAL Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Cost of Other Goods Sold Accts. Cr. Dr. Inventory Cr. $ 4,459 s 91 S 4,550 398 398 knox, Inc Store supplies/Gear Supply Hensel Company Sales 154 May 05 May 09 May 11 May 15 May 30 May 31 7,700 7,546 59,540 59,540 38,520 153 7,010 Lee services Sales 6,857 66,180 66.180 42,580 May 31 Totals $ 144,980 $ 398 s 19,260 $ 125,720 $ 398 $ 81,100 CASH PAYMENTS JOURNAL Date Ck.No. Payee Account Debited Cash Cr. . inventory Inventory Cr. Accounts Payable Dr. Other Accounts Dr. $ 3,000 870 May 01 3410 S&P Mgmt. Co 3,870 7,020 3411 158 7.178 May 08 May 15 Peyton products Payroll 3412 5,480 May 19 May 23 May 26 May 29 May 30 3413 3414 3415 Garcia, Inc. Fink Corp Perennial power Jenny Colo Payroll Rent exp. -Selling space Rent exp. - Office space Peyton products Sales salaries expense Office salaries expense Garcia, Inc. Fink Corp Utilities expense J. Colo, Withdrawals Sales salaries expense Office salaries expense 8,790 10,144 13,505 1,315 7,000 3,310 256 10,400 305 13,810 1,315 7,000 5,480 3,310 719 $ 29,765 $ 31,388 3416 3417 8,790 S 60,434 $ May 31 Totals Enter the transactions in a general journal. View transaction list View journal entry worksheet No Date Debit Credit 1 May 02 General Journal Sales returns and allowance Accounts receivable-Knox, Inc. 255 255 2 May 03 830 Accounts payable-Peyton products Inventory 830 3 May 12 950 Accounts payable-Gear Supply Co. Office equipment 950 2-a. Complete the work sheet using the following information for accounting adjustments. Prepare and post adjusting and closing entries. a. Expired insurance, $569. b. Ending store supplies inventory, $2,648. c. Ending office supplies inventory, $520. d. Depreciation of store equipment, $583. e. Depreciation of office equipment, $345. 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. 4-61. 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. GENERAL LEDGER Cash Accounts Receivable Debit Date Debit Credit Date Credit Balance 50.599 Balance 4,805 Apr. 30 Apr. 30 Merchandise Inventory Debit Office Supplies Debit Date Credit Date Credit Balance 220-240 Balance 510 Apr. 30 Apr. 30 Store Supplies Debit Prepaid Insurance Debit Date Credit Date Credit Balance 2,495 Balance 3,510 Apr. 30 Apr. 30 Office Equipment Debit Accumulated Depreciation Office Equipment Date Debit Credit Date Credit Balance 22,630 Balance 9.946 Apr. 30 Apr. 30 Store Equipment Debit Accumulated Depreciation-Store Equipment Date Debit Credit Date Credit Balance Balance 17,748 Apr. 30 39,240 Apr. 30 Accounts Payable Debit Jenny Colo, Capital Debit Date Credit Date Credit Balance 7,178 Apr. 30 Balance 309,157 Apr. 30 Jenny Colo, Withdrawals Debit Sales Debit Date Credit Balance Date Credit Balance Sales Returns and Allowances Debit Credit Sales Discounts Debit Date Balance Date Credit Balance Cost of Goods Sold Depreciation Expense-Office Equipment Debit Credit Date Debit Credit Balance Date Balance Depreciation Expense-Store Equipment Debit Credit Office Salaries Expense Debit Date Balance Date Credit Balance Sales Salaries Expense Debit Insurance Expense Debit Date Credit Balance Date Credit Balance Rent Expense, Office Space Debit Credit Rent Expense, Selling Space Debit Credit Date Balance Date Balance Office Supplies Expense Debit Store Supplies Expense Debit Credit Date Credit Balance Date Balance Utilities Expense Debit Income Summary Debit Date Credit Balance Date Credit Balance ACCOUNTS RECEIVABLE LEDGER Crane Corp Debit Credit Hensel Company Debit Date Balance Date Credit Balance Knox, Inc. Debit Lee Services Debit Date Credit Balance Date Credit Balance ACCOUNTS PAYABLE LEDGER Fink Corp. Debit Credit Garcia, Inc. Debit Date Balance Date Credit Balance Gear Supply Co. Debit Peyton Products Debit Date Credit Balance Date Credit Balance