Acc225 Fundamental Accounting Principles: P07-C Colo, P7-5A Choi, P7-6A Bishop

Acc225 Fundamental Accounting Principles Project - Appendix C P07-C Colo Company Assume it is Monday, May 1, the first business day of the month, and you have just been hired as the accountant for Colo Company, which operates with monthly accounting periods. All of the company’s accounting work is completed through the end of April and its ledgers show April 30 balances. During your first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 210, n30 unless stated differently): 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 supplies inventory, $2,632. c. Ending office supplies inventory, $504. d. Depreciation of store equipment, $567. e. Depreciation of office equipment, $329. Prepare and post adjusting and closing entries. 3. Prepare a May 2005 multiple-step income statement, a May 2005 statement of owner’s equity, and a May 31, 2005, classified balance sheet. 4. Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable. P7-6A Bishop Company Bishop Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30): Required 1. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory (March 1 beg. bal. is $300,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-Term Notes Payable; M. Bishop, Capital (March 1 beg. bal. is $300,000); Sales; Sales Discounts; Cost of Goods Sold; and Sales Salaries Expense. Open the following accounts receivable subsidiary ledger accounts: Taylor Few, Min Cho, and Lance Snow. Open the following accounts payable subsidiary ledger accounts: Stacy Company, Soy Industries, Tells Supply, and JW Company. 2. Enter these transactions in a sales journal like Exhibit 7.5, a purchases journal like Exhibit 7.9, a cash receipts journal like Exhibit 7.7, a cash disbursements journal like Exhibit 7.11, or a general journal. Number all journal pages as page 2. 3. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable. 4. Prepare the sales journal, purchase journal, cash reciepts journal, cash disbursement journal, general journal, general ledger, accounts recievable ledger, accounts payable, trial blance, schedule of accounts recievable, schedule of accounts payable. P7-5A CHOI ENTERPRISES Inv. No. Check Date Description Name or Date No. Terms Amount Dec. 16 Merchandise sold (cost $4,600) Hanna Seppa 916 2/10, n/30 $7,700 17 Received credit memo on returned merch. Funk Company Dec. 15 1,040 17 Purchased office supplies KK's Supply Company Dec. 16 n/10 EOM 615 18 Received credit memo on returned merch. KK's Supply Company Dec. 17 40 20 Issued credit memo on returned merch. Bo Brown Dec. 15 500 21 Purchased store equipment KK's Supply Company Dec. 21 n/10 EOM 6,700 22 Received payment less discount Hanna Seppa Dec. 12 23 Paid invoice less discount Crossland Company Dec. 15 623 24 Sold merchandise on credit (cost $600) Shilo Jones 917 1,200 24 Paid inv. less discount and return Funk Company Dec. 15 624 25 Received payment less discount and return Bo Brown Dec. 15 26 Purchased merchandise and invoice Crossland Company Dec. 25 2/10, n/60 8,100 29 Sold office supplies for cash at cost 50 30 Issued check to owner for personal use Ken Choi 625 3,500 31 Check issued for sales salaries Jamie Inman 626 2,020 31 Issued check for electric bill Access Electric Company 627 710 31 Cash sales for last half of month (cost $11,200) 29,600 Requirements: Prepare Special Journals, Post to Ledgers, Accounts Receivable Ledger, Accounts Payable Ledger, Trial Balance
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