Fundamental Accounting Principles, 21st Edition
478
Comprehensive Problem, Colo Company (Part 1—Continued)
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Office
Supplies
Dr.
Other
Accounts
Dr.
May 4
Store Supp./Gear Supp …………….…………….
5/04
n/10, EOM
125/✓
37,729
83
574
10
Office Equip./Gear Supp …………..………………
5/10
n/10, EOM
163/✓
4,074
4,074
11
Garcia, Inc ………………………………..………………
5/10
2/10, n/30
✓
8,800
17
Fink Corp ………………………………….………………
5/14
2/10, n/60
✓
13,650
24
Store Supp./Gear Supp …………….…………….
5/24
n/10, EOM
125/✓
9,030
280
630
25
Peyton Products …………………………..
5/23
2/10, n/30
✓
3,080
___
____
31
Totals ……………………………………….………………
76,363
363
5,278
(201)
(124)
(✓)
CASH RECEIPTS JOURNAL
Page 2
Date
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
May 5
Knox, Inc. …………….…………….
Sale of Apr. 28 …………………………..
✓
4,459
91
4,550
9
Store Supplies …….…………………….
Sold store
supplies ………..…………………
125
350
350
11
Hensel Company ..…………………………
Sale of May 2 …………………………..
✓
5,978
122
6,100
15
Sales …………………………..
Cash sales
May 1–15 ………..…………………
✓
59,220
59,220
38,200
30
Lee Services ……….………………….
Sale of May 22 …………………………..
✓
6,713
137
6,850
31
Sales …………………………..
Cash sales,
May 16–31 …………………………..
✓
66,052
___
_____
66,052
___
42,500
31
Totals ………………….……….
142,772
350
17,500
125,272
350
80,700
(101)
(415)
(106)
(413)
(✓)
(502/119)
Comprehensive Problem, Colo Company (Part 1—Continued)
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
May 1
3410
S&P Mgmt. Co. ……..……………………
Rent Exp.–Selling Space ….……………………….
642
2,968
Rent Exp.–Office Space …..………………………
641
3,710
742
8
3411
Peyton Products. ….……………………….
Peyton Products …………………………..
✓
6,174
126
6,300
15
3412
Payroll …………………..………
Sales Salaries Expense …………………………..
621
5,320
Office Salaries Expense …..………………………
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 Expense …………………………..
690
1,283
1,283
29
3416
Jenny Colo …………………………..
J. Colo, Withdrawals ………..…………………
302
7,000
7,000
30
3417
Payroll …………………..………
Sales Salaries Expense …………………………..
621
5,320
Office Salaries Expense …..………………………
620
8,470
___
3,150
_____
31
Totals …………………………..
57,108
575
28,933
28,750
(101)
(119)
(✓)
(201)
GENERAL JOURNAL Page 2
May 2
Sales Returns and Allow. …………………………….……………
414
Accounts Receivable—Knox, Inc. …………………………
106/✓
175
Issued a credit memo for returns.
3
Accounts Payable—Peyton Products …………..……………
201/✓
Inventory ………………………………………………..……..
119
798
Received a credit memo for returns.
12
Accts. Payable—Gear Supply Co. ………………..…………
201/✓
Office Equipment …………………………………………………
163
854
Received a credit memo for returns.
Fundamental Accounting Principles, 21st Edition
480
Comprehensive Problem, Colo Company (Continued) Part 2
COLO COMPANY
Work Sheet for Month Ended May 31, 2013
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
Office equipment …………………………..
25,690
25,690
Accum. depr. –Office equipment. …..…
9,898
(e) 329
10,227
Store equipment ………………………………
38,920
38,920
Accumulated depr. –Store equip ………
17,556
(d) 567
18,123
Accounts payable …………………………..
53,059
53,059
Jenny Colo, Capital ……………………….…
308,085
308,085
Jenny Colo, Withdrawals ……………….…
7,000
7,000
Sales …………………………………………….…
156,422
156,422
Sales discounts …………………………….…
350
350
Sales returns and allowances ………..…
175
175
Cost of goods sold ………………………..…
99,910
99,910
Depr. Expense–Office equipment …..…
(e) 329
329
Depr. Expense–Store equipment ………
(d) 567
567
Office salaries expense ……………………
6,300
6,300
Sales salaries expense ………………….…
10,640
10,640
Insurance expense ………………………..…
(a) 553
553
Rent expense, office space ………………
742
742
Rent expense, selling space ………….…
2,968
2,968
Office supplies expense ………………..…
(c) 289
289
Store supplies expense ……………………
(b) 669
669
Utilities expense ………………………………
1,283
______
_____
_____
1,283
______
______
______
Totals ………………………………………………
545,020
545,020
2,407
2,407
124,775
156,422
421,141
389,494
Net income …………………………………..…
31,647
______
______
31,647
Totals ………………………………………………
156,422
156,422
421,141
421,141
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
Store Supplies ………………………………….……………
125
669
To adjust for store supplies used.
31
Office Supplies Expense ……………………….….
650
289
Office Supplies ………………………………………………
124
289
To adjust for office supplies used.
31
Depreciation Expense–Store Equip.……….……………
613
567
Accumulated Depr.–Store Equip. ……………………
166
567
To record depreciation of store eq.
31
Depreciation Expense–Office Equip.……………………
612
329
Accumulated Depr.–Office Equip. ……..……………
164
329
To record depreciation of office eq.
Fundamental Accounting Principles, 21st Edition
482
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
Depr. Expense, Office Equipment …..………………
612
329
Depr. Expense, Store Equipment ……………………
613
567
Office Salaries Expense …………………………..
620
6,300
Sales Salaries Expense ………………….……….
621
10,640
Insurance Expense ………………………..…
637
553
Rent Expense, Office Space…………………………..
641
742
Rent Expense, Selling Space ………….………………
642
2,968
Office Supplies Expense ………………..…………
650
289
Store Supplies Expense …………………………..
651
669
Utilities Expense …………………………...………………
690
1,283
To close temporary accounts with
debit balances.
May 31
Income Summary ……………………………….
901
31,647
J. Colo, Capital ………………………………
301
31,647
To close income summary to
owner’s capital.
May 31
J. Colo, Capital …………………………………..
301
7,000
J. Colo, Withdrawals ………………………
302
7,000
To close withdrawals to owner’s capital.
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
May 31
R2
142,772
193,019
31
D2
57,108
135,911
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
4,725
May 2
G2
175
4,550
31
S2
31,150
35,700
31
R2
17,500
18,200
Merchandise Inventory
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
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
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
430
May 31
P2
363
793
31
G2
289
504
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
2,447
May 4
P2
574
3,021
9
R2
350
2,671
24
P2
630
3,301
31
G2
669
2,632
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
3,318
May 31
G2
553
2,765
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
22,470
May 10
P2
4,074
26,544
12
G2
854
25,690
Accumulated Depreciation–Office Equipment
Acct. No. 164
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
9,898
May 31
G2
329
10,227
Store Equipment
Acct. No. 165
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
38,920
Accumulated Depreciation–Store Equipment
Acct. No. 166
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
17,556
May 31
G2
567
18,123
Accounts Payable
Acct. No. 201
Date
Explanation
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
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
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Jenny Colo, Withdrawals
Acct. No. 302
Date
Explanation
PR
Debit
Credit
Balance
May 29
D2
7,000
7,000
31
G2
7,000
0
Sales
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
May 31
S2
31,150
31,150
31
R2
125,272
156,422
31
G2
156,422
0
Acct. No. 414
Date
Explanation
PR
Debit
Credit
Balance
May 2
G2
31
G2
0
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
May 31
R2
31
G2
0
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
May 31
S2
19,210
31
R2
99,910
31
G2
99,910
0
Date
Explanation
PR
Debit
Credit
Balance
May 31
G2
Date
Explanation
PR
Debit
Credit
Balance
May 31
G2
31
G2
0
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Office Salaries Expense
Acct. No. 620
Date
Explanation
PR
Debit
Credit
Balance
May 15
D2
3,150
3,150
30
D2
3,150
6,300
31
G2
6,300
0
Sales Salaries Expense
Acct. No. 621
Date
Explanation
PR
Debit
Credit
Balance
May 15
D2
5,320
5,320
30
D2
5,320
10,640
31
G2
10,640
0
Acct. No. 637
Date
Explanation
PR
Debit
Credit
Balance
May 31
G2
31
G2
0
Acct. No. 641
Date
PR
Debit
Credit
Balance
May 1
D2
31
G2
0
Acct. No. 642
Date
Explanation
PR
Debit
Credit
Balance
May 1
D2
2,968
2,968
31
G2
2,968
0
Acct. No. 650
Date
Explanation
PR
Debit
Credit
Balance
May 31
G2
31
G2
0
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Credit
Balance
May 26
D2
1,283
1,283
31
G2
1,283
0
Income Summary
Acct. No. 901
Date
Explanation
PR
Debit
Credit
Balance
May 31
G2
124,775
124,775
31
G2
156,422
31,647
31
G2
31,647
0
ACCOUNTS RECEIVABLE LEDGER
Crane Corp.
Date
Explanation
PR
Debit
Credit
May 26
S2
14,210
Hensel Company
Date
Explanation
PR
Debit
Credit
Balance
May 2
S2
6,100
6,100
11
R2
6,100
0
16
S2
3,990
3,990
Knox, Inc.
Date
Explanation
PR
Debit
Credit
Balance
Apr. 28
S2
4,725
4,725
May 2
G2
175
4,550
5
R2
4,550
0
Date
Explanation
PR
Debit
Credit
Balance
May 22
S2
6,850
6,850
30
R2
6,850
0