I need help with my Accounting homework? It is for the Colo Company.?

iCEE , Saturday, 14th of August 2010 10:40:36 PM

Assume it is Monday, May 1, the first business day of the month, and you

iCEE

have just been hired
as the accountant for Colo Company, which

Registered User

operates with monthly accounting periods. All of the
company’s

Joined: Tuesday, 20th of April 2010, 18:30:26

accounting work is completed through the end of April and its ledgers show

Posts: 231

April 30 balances.
During your first month on the job, the company

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experiences the following transactions and
events (terms for all its
credit sales are 210, n30 unless stated differently):
May 1 Issued
Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710.
(Use
two lines to record the transaction. Charge 80% of the rent to
Rent Expense—Selling Space
and the balance to Rent Expense—Office
Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No.
8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum
to Knox, Inc., for defective (worthless) merchandise sold
on April 28
and returned for credit. The total selling price (gross) was $4,725. />3 Received a $798 credit memorandum from Peyton Products for the return
of merchandise
purchased on April 29.
4 Purchased the following
on credit from Gear Supply Co.: merchandise, $37,072; store supplies,/>$574; and office supplies, $83. Invoice dated May 4, terms n10 EOM. />COMPREHENSIVE
PROBLEM—
PERPETUAL
Colo Company/>excel
mhhe.com/larson
Larson−Wild−Chiappetta:/>Fundamental Accounting
Principles, Seventeenth
Edition
7.
Accounting Information
Systems
Text © The McGraw−Hill/>Companies, 2004
302 Chapter 7 Accounting Information Systems
5
Received payment from Knox, Inc., for the balance from the April 28 sale
less the May 2
return and the discount.
8 Issued Check No. 3411
to Peyton Products to pay for the $7,098 of merchandise purchased
on
April 29 less the May 3 return and a 2% discount.
9 Sold store
supplies to the merchant next door at their cost of $350 cash.
10
Purchased $4,074 of office equipment on credit from Gear Supply Co.,
invoice dated May
10, terms n10 EOM.
11 Received payment from
Hensel Company for the May 2 sale less the discount.
11 Purchased
$8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms
210,
n30.
12 Received an $854 credit memorandum from Gear
Supply Co. for the return of defective office
equipment received on
May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of
sales salaries, $5,320, and office
salaries, $3,150. Cashed the check
and paid the employees.
15 Cash sales for the first half of the month
are $59,220 (cost is $38,200). (Cash sales are
recorded daily but are
recorded only twice here to reduce repetitive entries.)
15 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. (Such items are
posted daily but are posted only
twice each month because they are few in number.)
16 Sold merchandise
on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is/>$1,890).
17 Purchased $13,650 of merchandise from Fink Corp.,
invoice dated May 14, terms 210,
n60.
19 Issued Check No. 3413
to Garcia, Inc., in payment of its May 10 invoice less the discount. />22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost
is $4,990), terms
210, n60.
23 Issued Check No. 3414 to Fink
Corp. in payment of its May 14 invoice less the discount.
24
Purchased the following on credit from Gear Supply Co.: merchandise,
$8,120; store supplies,
$630; and office supplies, $280. Invoice
dated May 24, terms n10 EOM.
25 Purchased $3,080 of merchandise from
Peyton Products, invoice dated May 23, terms 210,
n30.
26 Sold
merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost
is $8,230).
26 Issued Check No. 3415 to Perennial Power in payment
of the May electric bill, $1,283.
29 The owner of Colo Company,
Jenny Colo, used Check No. 3416 to withdraw $7,000 cash
from the
business for personal use.
30 Received payment from Lee Services for
the May 22 sale less the discount.
30 Issued Check No. 3417, payable
to Payroll, in payment of sales salaries, $5,320, and office/>salaries, $3,150. Cashed the check and paid the employees.
31 Cash
sales for the last half of the month are $66,052 (cost is $42,500). />31 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.
Required
1. Enter these
transactions in a sales journal, a purchases journal, a cash receipts
journal, a cash disbursements
journal, or a general journal as
illustrated in this chapter. Post when instructed to do
so. Assume a
perpetual inventory system.
2. Prepare a trial balance in the Trial
Balance columns of the work sheet form provided with the working/>papers. Complete the work sheet using the following information for
accounting adjustments:
a. Expired insurance, $553.
b. Ending
store supp

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I need help with my Accounting homework? It is for the Colo Company.?

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