Comprehensive Problem, Colo Company (Continued) Part 2
COLO COMPANY
Work Sheet for Month Ended May 31, 2015
Unadjusted Trial
Balance Adjustments
Income
Statement
Balance Sheet or
State-ment of Owner’s
Equity
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
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Adjusting entries (Part 2)
May 31 Insurance Expense……………………………………………637 553
Prepaid Insurance…………………………………………128 553
To adjust for expired insurance.
31 Store Supplies Expense…………………………………….651 669
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Solutions Manual, Chapter 7
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Closing entries (Part 2)
May 31 Sales………………………………………………………………..413 156,422
Income Summary………………………………………….901 156,422
To close temporary accounts with
credit balances.
May 31 Income Summary………………………………………………901 124,775
Sales Returns and Allowances………………………414 175
Sales Discounts……………………………………………415 350
Cost of Goods Sold……………………………………….502 99,910
May 31 Income Summary……………………………….901 31,647
J. Colo, Capital……………………………… 301 31,647
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Solutions Manual, Chapter 7
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
GENERAL LEDGER
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 50,247
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 4,725
Merchandise Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 220,080
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 430
Store Supplies Acct. No. 125
Date Explanation PR Debit Credit Balance
May 4 P2 574 3,021
9 R2 350 2,671
24 P2 630 3,301
31 G2 669 2,632
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 22,470
Accumulated Depreciation–Office Equipment Acct. No. 164
Date Explanation PR Debit Credit Balance
Store Equipment Acct. No. 165
Date Explanation PR Debit Credit Balance
Accumulated Depreciation–Store Equipment Acct. No. 166
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 7,098
Jenny Colo, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Apr. 30 Balance 308,085
May 31 G2 31,647 339,732
31 G2 7,000 332,732
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Solutions Manual, Chapter 7
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Jenny Colo, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Sales Acct. No. 413
Date Explanation PR Debit Credit Balance
Sales Returns and Allowances Acct. No. 414
Date Explanation PR Debit Credit Balance
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Depreciation Expense—Office Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Depreciation Expense—Store Equipment Acct. No. 613
Date Explanation PR Debit Credit Balance
May 31 G2 567 567
31 G2 567 0
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Office Salaries Expense Acct. No. 620
Date Explanation PR Debit Credit Balance
Sales Salaries Expense Acct. No. 621
Date Explanation PR Debit Credit Balance
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Rent Expense, Office Space Acct. No. 641
Date Explanation PR Debit Credit Balance
Rent Expense, Selling Space Acct. No. 642
Date Explanation PR Debit Credit Balance
Office Supplies Expense Acct. No. 650
Date Explanation PR Debit Credit Balance
Store Supplies Expense Acct. No. 651
Date Explanation PR Debit Credit Balance
May 31 G2 669 669
31 G2 669 0
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Utilities Expense Acct. No. 690
Date Explanation PR Debit Credit Balance
Income Summary Acct. No. 901
Date Explanation PR Debit Credit Balance
ACCOUNTS RECEIVABLE LEDGER
Crane Corp.
Date Explanation PR Debit Credit Balance
Hensel Company
Date Explanation PR Debit Credit Balance
Knox, Inc.
Date Explanation PR Debit Credit Balance
Lee Services
Date Explanation PR Debit Credit Balance
May 22 S2 6,850 6,850
30 R2 6,850 0
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Comprehensive Problem, Colo Company (Continued)
Part 2—continued
ACCOUNTS PAYABLE LEDGER
Fink Corp.
Date Explanation PR Debit Credit Balance
Garcia, Inc.
Date Explanation PR Debit Credit Balance
Gear Supply Co.
Date Explanation PR Debit Credit Balance
Peyton Products
Date Explanation PR Debit Credit Balance
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Solutions Manual, Chapter 7
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Comprehensive Problem, Colo Company (Continued)
Part 3
COLO COMPANY
Income Statement
For Month Ended May 31, 2015
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
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Solutions Manual, Chapter 7
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