Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 07A-06A
Debit Credit
69,884$
19,225
10,000
1,230
1,770
21,220
24,220$
82,000
10,000
116,685
652
76,225
2,425
1,476
36,600
236,806$ 236,806$
Correct! Correct!
14,910$
4,315
19,225$
Correct!
3,000$
21,220
24,220$
Total accounts receivable
Gabel Company
Spell Supply
Total accounts payable
March 31
Schedule of Accounts Payable
Sales
Sales discounts
Purchases
Purchases Returns and Allowances
Purchases Discounts
Sales salaries expense
Totals
Jovita Albany
Linda Witt
Accounts receivable
Inventory
Office supplies
CHURCH COMPANY
Store supplies
Office equipment
Accounts payable
Long-term notes payable
Z. Church Capital
Cash
March 31
Schedule of Accounts Receivable
March 31
Trial Balance
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 07A-06A
Correct!
Check figure:
Trial balance totals
Check issued for sales salaries
Cash sales for second half of month (cost $16,820)
Additional information:
March 1 beginning balance for inventory
March 1 beginning balance for Z. CHURCH, Capital
Paid invoice less discount and credit memo
CD Company
Merchandise sold (cost $7,220)
Jovita Albany
Merchandise sold (cost $3,280)
Linda Witt
Received credit memo on returned merchandise.
CD Company
Received credit memo on returned office equipment
Spell Supply
Received payment less discount
Jovita Albany
Check issued for sales salaries
Payroll
Cash sales for first half of month (cost $20,210)
Purchased store supplies
Gabel Company
Paid invoice less discount
Van Industries
Received payment less discount
Linda Witt
Purchase merchandise
CD Company
Purchased office equipment
Spell Supply
Sold merchandise (cost $2,900)
Jovita Albany
Received payment less discount
Min Cho
Purchased office supplies
Gabel Company
Merchandise sold (cost $5,800)
Linda Witt
Borrowed on long-term note payable
Federal Bank
Given Data P07A-06A:
CHURCH COMPANY
Received merchandise and invoice
Van Industries
Merchandise sold (cost $8,400)
Min Cho
Student Name:
Class:
Acct’s Rcvble COGS
Inv. Debit Debit
Date
Account Debited
No. PR Sales Credit Inv. Credit
May 2 8785 √6,100 4,100
16 8786 √3,990 1,890
22 8787 √6,850 4,990
26 8788 √14,210 8,230
31 31,150 19,210
Correct! Correct!
Accounts Office Other
Inv. Payable Inventory Supplies Accounts
Date Account Date Terms PR Credit Debit Debit Debit
May 4 5/04 n/10, EOM 125/√ 37,729 37,072 83 574
10 5/10 n/10, EOM 163/√ 4,074 4,074
11 5/10 2/10, n/30 √8,800 8,800
17 5/14 2/10, n/60 √13,650 13,650
24 5/24 n/10, EOM 125/√ 9,030 8,120 280 630
25 5/23 2/10, n/30 √3,080 3,080
31 76,363 70,722 363 5,278
Correct! Correct! Correct! Correct!
Sales Accts. Other COGS
Cash Discount Recv. Sales Accts. Debit
Date Account Cr. Explanation PR Debit Debit Credit Credit Credit Inv. Credit
May 5 Sale of April 28 √4,459 91 4,550
9 Sold store supplies 125 350 350
11 Sale of May 2 √5,978 122 6,100
15 Cash sales, √59,220 59,220 38,200
May 1-15
30 Sale of May 22 √6,713 137 6,850
31 Cash Sales, √66,052 66,052 42,500
May 16-31
31 142,772 350 17,500 125,272 350 80,700
Correct! Correct! Correct! Correct! Correct! Correct!
Other Accts.
Check Account Cash Inventory Accts. Payable
Date No. Payee Debited PR Credit Credit Debit Debit
May 1 3410 S&P Mgmt. Co. Rent Exp., Selling 642 2,968
Rent Exp., Office 641 3,710 742
83411 Peyton Products Peyton Products √6,174 126 6,300
15 3412 Payroll Sales Salaries Exp. 621 5,320
Office Salaries Exp.
620 8,470 3,150
19 3413 Garcia, Inc. Garcia, Inc. √8,624 176 8,800
23 3414 Fink Corp. Fink Corp. √13,377 273 13,650
26 3415 Perennial Power Utilities Exp. 690 1,283 1,283
29 3416 Jenny Colo
J. Colo, Withdrawals
302 7,000 7,000
30 3417 Payroll Sales Salaries Exp. 621 5,320
Office Salaries Exp.
620 8,470 3,150
Totals 57,108 575 28,933 28,750
Correct! Correct! Correct! Correct!
Fink Corp.
Garcia, Inc.
Off. Equip./Gear Supp.
Store Supp./Gear Supp.
Totals
Sales
Lee Services
Sales
Hensel Company
Store Supplies
Knox, Inc.
McGraw-Hill/Irwin
Instructor
Sales Journal
COLO COMPANY
Purchases Journal
COLO COMPANY
Cash Receipts Journal
COLO COMPANY
Problem 07C
Cash Disbursements Journal
COLO COMPANY
Totals
Crane Corp.
Lee Services
Hensel Company
Hensel Company
Totals
Peyton Products
Store Supp./Gear Supp.
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Date Description PR Debit Credit
May 2 414 175
106/√ 175 «- Correct!
3201/√ 798
119 798 «- Correct!
12 201/√ 854
163 854 «- Correct!
Adjusting entries
May 31 637 553
128 553 «- Correct!
31 651 669
125 669 «- Correct!
31 650 289
124 289 «- Correct!
31 613 567
166 567 «- Correct!
31 612 329
164 329 «- Correct!
Closing entries
May 31 413 156,422
901 156,422 «- Correct!
31 901 124,775
414 175 «- Correct!
415 350 «- Correct!
502 99,910 «- Correct!
612 329 «- Correct!
613 567 «- Correct!
620 6,300 «- Correct!
621 10,640 «- Correct!
637 553 «- Correct!
641 742 «- Correct!
642 2,968 «- Correct!
650 289 «- Correct!
651 669 «- Correct!
690 1,283 «- Correct!
31 901 31,647
301 31,647 «- Correct!
31 301 7,000
302 7,000 «- Correct!
Jenny Colo, Withdrawals
Store Supplies Expense
Utilities Expense
Income Summary
Jenny Colo, Capital
To close temporary accounts with debit balances.
To close income summary to owner’s capital.
Jenny Colo, Capital
Cost of Goods Sold
Depr. Expense, Office Equipment
Depr. Expense, Store Equipment
Office Salaries Expense
Sales Salaries Expense
Insurance Expense
Rent Expense, Office Space
Rent Expense, Selling Space
Office Supplies Expense
Accumulated Depr., Office Equip.
Income Summary
Sales
Income Summary
Sales Returns and Allowances
To record depreciation of office equipment.
To close temporary accounts with credit balances.
Sales Discounts
Office Equipment
Accounts Payable-Gear Supply Co.
Inventory
Accounts Payable-Peyton Products
Accounts Receivable-Knox, Inc.
Sales Returns and Allowances
Insurance Expense
Depreciation Expense, Store Equip.
Received a credit memo for returns.
To close withdrawals to owner’s capital.
Prepaid Insurance
Store Supplies Expense
Store Supplies
To adjust for expired insurance
To adjust for store supplies used.
Accumulated Depr., Store Equip.
Depreciation Expense, Office Equip.
To adjust for office supplies used.
To record depreciation of store equipment.
Office Supplies Expense
Office Supplies
Received a credit memo for returns.
General Journal
COLO COMPANY
Issued a credit memo for returns.
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Cash Account No. 101
Date
Explaination
PR Debit Credit Balance
Apr. 30 50,247
May 31 R2 142,772 193,019
31 D2 57,108 135,911 «- Correct!
Accounts Receivable Account No. 106
Date
Explaination
PR Debit Credit Balance
Apr. 30 4,725
May 2 G2 175 4,550
31 S2 31,150 35,700
31 R2 17,500 18,200 «- Correct!
Merchandise Inventory Account No. 119
Date
Explaination
PR Debit Credit Balance
Apr. 30 220,080
May 3 G2 798 219,282
31 D2 575 218,707
31 P2 70,722 289,429
31 R2 80,700 208,729
31 S2 19,210 189,519 «- Correct!
Office Supplies Account No. 124
Date
Explaination
PR Debit Credit Balance
Apr. 30 430
May 31 P2 363 793
31 G2 289 504 «- Correct!
Store Supplies Account No. 125
Date
Explaination
PR Debit Credit Balance
Apr. 30 2,447
May 4 P2 574 3,021
9R2 350 2,671
24 P2 630 3,301
31 G2 669 2,632 «- Correct!
Prepaid Insurance Account No. 128
Date
Explaination
PR Debit Credit Balance
Apr. 30 3,318
May 31 G2 553 2,765 «- Correct!
Office Equipment Account No. 163
Date
Explaination
PR Debit Credit Balance
Apr. 30 22,470
May 10 P2 4,074 26,544
12 G2 854 25,690 «- Correct!
Accumulated Depreciation, Office Equipment Account No. 164
Date
Explaination
PR Debit Credit Balance
Apr. 30 9,898
May 31 G2 329 10,227 «- Correct!
Balance
Balance
Balance
Balance
Balance
Balance
COLO COMPANY
General Ledger
Balance
Balance
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Store Equipment Account No. 165
Date
Explaination
PR Debit Credit Balance
Apr. 30 38,920 «- Correct!
Accumulated Depreciation, Store Equipment Account No. 166
Date
Explaination
PR Debit Credit Balance
Apr. 30 17,556
May 31 G2 567 18,123 «- Correct!
Accounts Payable Account No. 201
Date
Explaination
PR Debit Credit Balance
Apr. 30 Balance 7,098
May 3 G2 798 6,300
12 G2 854 5,446
31 P2 76,363 81,809
31 D2 28,750 53,059 «- Correct!
Jenny Colo, Capital Account No. 301
Date
Explaination
PR Debit Credit Balance
Apr. 30 308,085
May 31 G2 31,647 339,732
31 G2 7,000 332,732 «- Correct!
Jenny Colo, Withdrawals Account No. 302
Date
Explaination
PR Debit Credit Balance
May 29 D2 7,000 7,000
31 G2 7,000 0 «- Correct!
Sales Account No. 413
Date
Explaination
PR Debit Credit Balance
May 31 S2 31,150 31,150
31 R2 125,272 156,422
31 G2 156,422 0 «- Correct!
Sales Returns and Allowances Account No. 414
Date
Explaination
PR Debit Credit Balance
May 2 G2 175 175
31 G2 175 0 «- Correct!
Sales Discounts Account No. 415
Date
Explaination
PR Debit Credit Balance
May 31 R2 350 350
31 G2 350 0 «- Correct!
Cost of Goods Sold Account No. 502
Date
Explaination
PR Debit Credit Balance
May 31 S2 19,210 19,210
31 R2 80,700 99,910
31 G2 99,910 0 «- Correct!
Depreciation Expense, Ofc. Equipment Account No. 612
Date
Explaination
PR Debit Credit Balance
May 31 G2 329 329
31 G2 329 0 «- Correct!
Depreciation Expense, Store Equipment Account No. 613
Date
Explaination
PR Debit Credit Balance
May 31 G2 567 567
Balance
Balance
Balance
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
31 G2 567 0 «- Correct!
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Office Salaries Expense Account No. 620
Date
Explaination
PR Debit Credit Balance
May 15 D2 3,150 3,150
30 D2 3,150 6,300
31 G2 6,300 0 «- Correct!
Sales Salaries Expense Account No. 621
Date
Explaination
PR Debit Credit Balance
May 15 D2 5,320 5,320
30 D2 5,320 10,640
31 G2 10,640 0 «- Correct!
Insurance Expense Account No. 637
Date
Explaination
PR Debit Credit Balance
May 31 G2 553 553
31 G2 553 0 «- Correct!
Rent Expense, Office Space Account No. 641
Date
Explaination
PR Debit Credit Balance
May 1 D2 742 742
31 G2 742 0 «- Correct!
Rent Expense, Selling Space Account No. 642
Date
Explaination
PR Debit Credit Balance
May 1 D2 2,968 2,968
31 G2 2,968 0 «- Correct!
Office Supplies Expense Account No. 650
Date
Explaination
PR Debit Credit Balance
May 31 G2 289 289
31 G2 289 0 «- Correct!
Store Supplies Expense Account No. 651
Date
Explaination
PR Debit Credit Balance
May 31 G2 669 669
31 G2 669 0 «- Correct!
Utilities Expense Account No. 690
Date
Explaination
PR Debit Credit Balance
May 26 D2 1,283 1,283
31 G2 1,283 0 «- Correct!
Income Summary Account No. 901
Date
Explaination
PR Debit Credit Balance
May 31 G2 124,775 124,775
31 G2 156,422 31,647
31 G2 31,647 0 «- Correct!
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Date
Explaination
PR Debit Credit Balance
May 26 S2 14,210 14,210 «- Correct!
Date
Explaination
PR Debit Credit Balance
May 2 S2 6,100 6,100
11 R2 6,100 0
16 S2 3,990 3,990 «- Correct!
Date
Explaination
PR Debit Credit Balance
Apr. 28 S2 4,725 4,725
May 2 G2 175 4,550
5R2 4,550 0 «- Correct!
Date
Explaination
PR Debit Credit Balance
May 22 S2 6,850 6,850
30 R2 6,850 0 «- Correct!
Date
Explaination
PR Debit Credit Balance
May 17 P2 13,650 13,650
23 D2 13,650 0 «- Correct!
Date
Explaination
PR Debit Credit Balance
May 11 P2 8,800 8,800
19 D2 8,800 0 «- Correct!
Date
Explaination
PR Debit Credit Balance
May 4 P2 37,729 37,729
10 P2 4,074 41,803
12 G2 854 40,949
24 P2 9,030 49,979 «- Correct!
Date
Explaination
PR Debit Credit Balance
Apr. 29 P2 7,098 7,098
May 3 G2 798 6,300
8D2 6,300 0
25 P2 3,080 3,080 «- Correct!
Lee Services
Knox Co.
Hensel Company
Crane Corp.
Gear Supply Co.
Peyton Products
Garcia, Inc.
Fink Corp.
Accounts Payable Ledger
COLO COMPANY
Accounts Receivable Ledger
COLO COMPANY
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Balance Sheet
Unadjusted Income or Statement
Trial Balance Adjustments Statement of Owner’s Equity
Account
Debit Credit Debit Credit Debit Credit Debit Credit
135,911 135,911
18,200 18,200
189,519 189,519
793 289 504
3,301 669 2,632
3,318 553 2,765
25,690 25,690
9,898 329 10,227
38,920 38,920
17,556 567 18,123
53,059 53,059
308,085 308,085
7,000 7,000
156,422 156,422
350 350
175 175
99,910 99,910
329 329
567 567
6,300 6,300
10,640 10,640
553 553
742 742
2,968 2,968
289 289
669 669
1,283 1,283
545,020 545,020 2,407 2,407 124,775 156,422 421,141 389,494
Correct! Correct! Correct! Correct! 31,647 31,647
156,422 156,422 421,141 421,141
Correct! Correct! Correct! Correct!
156,422$
350$
175 525
155,897$
99,910
55,987$
567$
10,640
2,968
669
14,844$
329$
6,300
553
742
289
1,283
9,496
24,340
31,647$
Correct!
Office supplies expense
Utilities expense
Total general and administrative expenses
Total operating expenses
Net income
COLO COMPANY
Sales salaries expense
Rent expense, selling space
Store supplies expense
Total selling expenses
General and administrative expenses:
Depreciation expense, office equipment
Office salaries expense
Insurance expense
Rent expense, office space
Sales
Less: Sales discounts
Sales returns and allowances
Net sales
Less: Cost of goods sold
Gross profit on sales
Operating expenses:
Selling expenses:
Depreciation expense, store equipment
Rent exp., office space
Rent exp., selling space
Office supplies expense
Store supplies expense
Utilities expense
Totals
Net income
Totals
Revenue:
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Depr. expense, office equip.
Depr. expense, store equip.
Office salaries expense
Sales salaries expense
Insurance expense
Store supplies
Prepaid insurance
Office equipment
Accum. depr., office equip.
Store equipment
Accum. depr., store equip.
Accounts payable
Jenny Colo, Capital
Jenny Colo, Withdrawals
Accounts receivable
Cash
Merchandise inventory
Office supplies
For Month Ended May 31, 2013
Work Sheet
For Month Ended May 31, 2013
Income Statement
COLO COMPANY
COLO COMPANY
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
$308,085
31,647
$339,732
(7,000)
$332,732
Correct!
Jenny Colo, Capital, May 31, 2013
Jenny Colo, Capital, April 30, 2013
Plus: Net income
Less: Withdrawals by owner
For Month Ended May 31, 2013
Statement of Owner’s Equity
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 07C
Assets
$135,911
18,200
189,519
504
2,632
2,765
$349,531 «- Correct!
25,690
10,227 15,463 «- Correct!
38,920
18,123 20,797 «- Correct!
36,260 «- Correct!
$385,791 «- Correct!
Liabilities
$53,059 «- Correct!
Equity
332,732 «- Correct!
$385,791 «- Correct!
Debit Credit
$135,911
18,200
189,519
504
2,632
2,765
25,690
$10,227
38,920
18,123
53,059
332,732
$414,141 $414,141
Correct! Correct!
$14,210
3,990
$18,200
Correct!
$3,080
49,979
$53,059
Correct!
Total accounts payable
Total accounts receivable
Peyton Products
Gear Supply Co.
Accum. depr., store equipment
Accounts payable
Jenny Colo, Capital
Totals
Crane Corp.
Jenny Colo, Capital
Total liabilities and equity
Cash
Accounts receivable
Merchandise inventory
Hensel Company
Office supplies
Store supplies
Prepaid insurance
Office equipment
Accum. depr., office equipment
Store equipment
Office equipment
Less accumulated depreciation
Store equipment
Less accumulated depreciation
Total plant assets
Total assets
Current liabilities:
Accounts payable
Current assets:
Cash
Accounts receivable
Merchandise inventory
Office supplies
Prepaid insurance
Total current assets
Plant assets:
May 31, 2013
Schedule of Accounts Receivable
COLO COMPANY
May 31, 2013
Schedule of Accounts Payable
COLO COMPANY
May 31, 2013
Balance Sheet
COLO COMPANY
May 31, 2013
Post-Closing Trial Balance
COLO COMPANY
Store supplies
Inv. No. Check
Date Description Name or Date No. Terms Amount
May1 3410 3,710$
28785 2/10, n/30 6,100
2 Apr. 28 175
Apr. 28 4,725
3 Apr. 29 798
4 May 4 n/10 EOM 37,072
May 4 n/10 EOM 574
May 4 n/10 EOM 83
5 Apr. 28 n/10 EOM ?
8 Apr. 29 3411 7,098
9350
10 May 10 n/10 EOM 4,074
11 May 2 ?
11 May 10 2/10, n/30 8,800
12 May 10 854
15 3412 5,320
3412 3,150
15 59,220
16 8786 2/10, n/30 3,990
17 May 14 2/10, n/60 13,650
19 May 10 3413 ?
22 8787 2/10, n/60 6,850
23 May 14 3414 ?
24 May 24 n/10 EOM 8,120
May 24 n/10 EOM 630
May 24 n/10 EOM 280
25 May 23 2/10, n/30 3,080
26 8788 2/10, n/30 14,210
26 3415 1,283
29 3416 7,000
30 May 22 ?
30 3417 5,320
3417 3,150
31 66,052
Additional information:
a. Expired insurance 553$
b. Ending store supplies inventory 2,632$
c. Ending office supplies inventory 504$
d. Depreciation of store equipment 567$
e. Depreciation of office equipment 329$
Check figure:
(2) Unadjusted trial balance totals: $545,020
Adjustments column totals: $2,407
(3) Net income: $31,647
Total assets: $385,791
Jenny Colo
Lee Services
Payroll
Payroll
Gear Supply Co.
Gear Supply Co.
Peyton Products
Crane Corp.
Perennial Power
Fink Corp.
Garcia, Inc.
Lee Services
Fink Corp.
Gear Supply Co.
Gear Supply Co.
Payroll
Payroll
Hensel Company
Peyton Products
Gear Supply Co.
Hensel Company
Garcia, Inc.
Peyton Products
Gear Supply Co.
Gear Supply Co.
Gear Supply Co.
Knox Co.
Issued check to owner for personal use
Received payment less discount
Check issued for sales salaries
Check issued for office salaries
Cash sales for second half of month (cost $42,500)
Purchased store supplies on credit
Purchased office supplies on credit
Purchased merchandise on credit
Sold merchandise on credit (cost $8,230)
Paid May electric bill
Purchased merchandise on credit
Paid invoice less discount
Sold merchandise on credit (cost $4,990)
Paid invoice less discount
Purchased merchandise on credit
Received credit memo on returned merchandise.
Check issued for sales salaries
Check issued for office salaries
Cash sales for first half of month (cost $38,200)
Sold merchandise on credit (cost $1,890)
Paid inv. less 2 % discount and May 3 return
Sold office supplies for cash at cost
Purchased office equipment on credit
Received payment less discount
Purchased merchandise on credit
Received credit memo on returned merchandise
Purchased merchandise on credit
Purchased store supplies on credit
Purchased office supplies on credit
Received payment less discount and return
Total selling price (gross)
Hensel Company
S&P Management Co.
Knox Co.
Knox Co.
COLO COMPANY
Given Data P07C:
Sold merchandise on credit (cost $4,100)
Paid rent (80% selling space, 20% office space)
Issued credit memo on returned merchandise.