Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
SERIAL PROBLEM – SP 7
Serial Problem, Business Solutions (100 minutes) Parts 1 and 2
SALES JOURNAL
Page 2
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
Jan. 13
Liu Corp. ……………………………………………..
n/a
✓
5,200
3,560
KC, Inc. ……………………………………………….
n/a
✓
5,800
4,640
Delta Co. ……………………………………………..
n/a
✓
3,220
2,660
Wildcat Services …………………………..
n/a
✓
2,800
2,002
IFM Company …………………………..
n/a
✓
Totals ………………………………………………….
CASH RECEIPTS JOURNAL
Page 2
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Services
Revenue
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Gomez Co …………………………..
Invoice, n/a
✓
2,668
2,668
Cash Sales
✓
4,000
4,000
Liu Corp …………………………..
Invoice, 1/13
✓
4,653
4,700
Invoice, 1/11
5,500
5,500
Delta Co …………………………..
Invoice, 2/23
✓
3,220
3,220
Cash Sales
✓
Totals …………………………..
25,301
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
Serial Problem, Business Solutions (Continued)
PURCHASES JOURNAL
Page 2
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Computer
Supplies
Dr.
Other
Accounts
Dr.
Jan. 7
Kansas Corp …………………………..
1/7
1/10, n/30
✓
5,800
5,800
Kansas Corp …………………………..
1/10, n/30
✓
9,000
9,000
Mar. 8
Harris Office Products ……………………….
✓
2,730
Totals …………………………………………………
2,730
CASH DISBURSEMENTS JOURNAL
Page 2
Date
Ck.
No.
Payee
Account Debited
PR
Cash
Cr.
Inventory
Cr.
Other
Accounts
Dr.
Accounts
Payable
Dr.
Wages Payable ……………………..
n/a
Not specified …………………………..
Merchandise Inventory ………….
600
n/a
Kansas Corp …………………………..
Kansas Corp ………………………….
n/a
Lyn Addie …………………………..
Wages Expense …………………….
Feb. 1
n/a
Hillside Mall …………………………..
Prepaid Rent ………………………….
n/a
Kansas Corp …………………………..
Kansas Corp ………………………….
n/a
Not specified …………………………..
Advertising Expense …………….
600
n/a
S. Rey …………………………..
S. Rey, Withdrawals ………………
n/a
Lyn Addie …………………………..
Wages Expense …………………….
n/a
S. Rey …………………………..
Mileage Expense …………………..
192
n/a
Not Specified …………………………..
Repairs Expense …………………..
960
n/a
Harris Off. Prod …………………………..
Harris Office Products …………..
n/a
S. Rey …………………………..
Mileage Expense …………………..
128
___
623/210
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
Serial Problem, Business Solutions (Concluded)
Part 3
GENERAL JOURNAL
Page 2
2018
Jan. 5 Cash …………………………………………………………. 101 25,000
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
Comprehensive Problem
Comprehensive Problem, Colo Company (150 minutes)
Part 1
SALES JOURNAL
Page 2
Date
Account Debited
Invoice
Number
PR
Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
May 2
Hensel Company …………………………..
8785
✓
6,100
4,100
Hensel Company …………………………..
8786
✓
3,990
1,890
Lee Services …………………………..
8787
✓
6,850
4,990
Crane Corp. …………………………..
8788
✓
Totals …………………………..
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
Comprehensive Problem, Colo Company (Part 1—Continued)
PURCHASES JOURNAL
Page 2
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Dr.
Other
Accounts
Dr.
Store Supp./Gear Supp …………………………..
5/04
n/10, EOM
125/✓
37,729
37,072
83
574
Office Equip./Gear Supp …………………………..
5/10
n/10, EOM
163/✓
4,074
8,800
8,800
Fink Corp ………………………………………………….
5/14
13,650
13,650
Store Supp./Gear Supp …………………………..
5/24
n/10, EOM
125/✓
9,030
8,120
630
____
Totals ……………………………………………………….
76,363
70,722
(119)
(124)
CASH RECEIPTS JOURNAL
Page 2
Account Credited
Explanation
PR
Cash
Dr.
Sales
Discount
Dr.
Accounts
Receivable
Cr.
Sales
Cr.
Other
Accts.
Cr.
Cost of Goods
Sold Dr.
Inventory Cr.
Knox, Inc. …………………………..
Sale of Apr. 28 …………………………..
✓
4,459
91
4,550
Totals …………………………..
17,500
(106)
(502/119)
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
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
3412
Payroll …………………………..
Sales Salaries Expense …………………………..
621
5,320
Office Salaries Expense …………………………..
620
3,150
3413
Garcia, Inc. …………………………..
Garcia, Inc. …………………………..
3414
Fink Corp. …………………………..
Fink Corp. …………………………..
13,377
3415
Perennial Power …………………………..
Utilities Expense …………………………..
690
1,283
3416
Jenny Colo …………………………..
J. Colo, Withdrawals …………………………..
302
7,000
3417
Payroll …………………………..
Sales Salaries Expense …………………………..
621
5,320
Office Salaries Expense …………………………..
620
Totals …………………………..
57,108
GENERAL JOURNAL Page 2
Sales Returns and Allow. ………………………………………….
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
Solutions Manual, Chapter 7
487
Comprehensive Problem, Colo Company (Continued) Part 2
COLO COMPANY
Work Sheet for Month Ended May 31, 2017
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 …………………….
Office supplies ………………………………..
Store supplies …………………………………
(b) 669
Prepaid insurance …………………………..
Office equipment …………………………..
25,690
25,690
10,227
Store equipment ………………………………
17,556
(d) 567
18,123
Accounts payable …………………………..
53,059
53,059
Jenny Colo, Capital ………………………….
308,085
Jenny Colo, Withdrawals ………………….
Sales ……………………………………………….
156,422
156,422
Sales discounts ……………………………….
Sales returns and allowances …………..
175
175
Cost of goods sold …………………………..
99,910
99,910
(d) 567
Office salaries expense ……………………
Sales salaries expense …………………….
10,640
10,640
Insurance expense …………………………..
553
Rent expense, office space ………………
Office supplies expense …………………..
Store supplies expense ……………………
(b) 669
Utilities expense ………………………………
Totals ………………………………………………
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
488
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Adjusting entries (Part 2)
May 31
Insurance Expense ……………………………………………..
637
553
128
651
669
125
650
289
124
613
567
166
612
329
164
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
489
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Closing entries (Part 2)
May 31
Sales ……………………………………………………….
413
156,422
901
156,422
May 31
901
124,775
414
502
612
613
620
621
637
641
642
650
651
690
May 31
901
301
May 31
301
302
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
490
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
175
4,550
35,700
18,200
Acct. No. 119
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
798
575
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
430
793
289
504
Store Supplies
Acct. No. 125
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
2,447
3,021
350
2,671
3,301
669
2,632
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7
491
Comprehensive Problem, Colo Company (Continued)
Part 2—continued
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Apr. 30
Balance
3,318
Accumulated Depreciation–Store Equipment
Acct. No. 166
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
2,765
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
492
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
Acct. No. 413
Date
Explanation
PR
Debit
Credit
Balance
R2
156,422
Acct. No. 414
Date
Explanation
PR
Debit
Credit
Balance
Acct. No. 415
Date
Explanation
PR
Debit
Credit
Balance
R2
Cost of Goods Sold
Acct. No. 502
Date
Explanation
PR
Debit
Credit
Balance
R2
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance