Business Bankruptcy Law | Small Business Bankruptcy Laws

My husband and I just got royally screwed by our employer and after 4 months with no pay decided to leave our jobs. I know that sounds crazy and you are thinking why would you wait 4 months to leave. Well it is complicated. You see for the last 9 years or so I have been employed by a business that I rightfully owned and help to start. This was a family business but it was all in my name. So this business slowed down so much so in the last year that we decided it was time to move on and try and do something else. My husband and I had always wanted to open a honky tonk and I thought this might be the perfect time. So with some discussion, I talked my husband and my dad into opening a large scale nightclub. Jason and I could not put the business in our names at this time so it was put into my dad’s name. We sold all of the assets of the business that was in my name and put them into the start up of this nightclub. Jason and I had some doubts about my dad in the beginning but we thought we could trust him. Unfortunately we where wrong. We should have been making huge profits but my dad swore we where not making money. I could look and see that we had made money. He would say he was paying bills but we where getting calls saying the bills weren’t paid. Dad wouldn’t show us the books or turn them over. We wanted to hire and accountant or to do the books ourselves. Not to cut my dad out of money but to make sure it was being done right. My dad refused saying that my husband and I had nothing in this company but a couple months of work and that this was all his and he would do what he wanted with it. All his are you kidding me! He has got to be out of his fringing mind. Actually he is. But anyway now my husband and I are like super behind on everything. We can’t pay our bills. We are looking for jobs but they are harder to come by these days. There has got to be some kind of legal recourse for me here it is just killing me to watch someone else make money on our hard work while we are trying to figure out how to keep from filing bankruptcy. It is a weird situation but if anyone knows anything about what I might be able to do here I would be so thankful. I am not even sure what kind of lawyer I could discuss this with. PLEASE HELP ME!

My father was an alcoholic and diagnosed chronic depressive. My mother owned a business in VA. 3 months after she passed January 2007, a former ‘Friend’ of the family and the business’ corporate lawyer convinced my father to sign a contract making him CEO of the S corporation. He never ran any part of the company and they literally were handing him drinks. A few months later they declared Chapter 11. This would not be so bad however all the responsibility for the payroll tax debt since 2004 (1.3 million) fell on my father’s personal assets by the IRS. He was never in charge of any accounting or running of the actual business. In fact later in 2007 according to his journal he actually signed the company completely over to this "Family friend.’ I found the original contract from the sharholder meeting making him the "CEO’ but am still trying to locate the contract signing it over to the ‘Family friend.’ My father was levyed and the IRS took 200k and his Military retirement. (26 years in the airforce) He then due to extreme depression ended his own life. He was truly screwed over and was not emotionally ready to defend himself otherwise I’m sure he would have gotten a lawyer.

1. Is this undue influence?
2. How can he be the only one held accountable when there are other corporate officers that handled the chapter 11 and were represented as ‘President" ‘Vice President’ and accountant on the contract?
3. Is there a way to find out if there was a second sale to the family friend and her lawyer?
4. Do I have a case to sue those responsible for duping him?

(If the Working Papers that accompany this book are not available, omit this comprehensive problem.)
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):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies,
4; and office supplies, . 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 ,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 0 cash.
10 Purchased ,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 ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an 4 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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is
,890).
17 Purchased ,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 ,850 (cost is ,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, ,120; store supplies,
0; and office supplies, 0. Invoice dated May 24, terms n10 EOM.
25 Purchased ,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 ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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 th

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):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies,
4; and office supplies, . 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 ,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 0 cash.
10 Purchased ,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 ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an 4 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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is
,890).
17 Purchased ,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 ,850 (cost is ,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, ,120; store supplies,
0; and office supplies, 0. Invoice dated May 24, terms n10 EOM.
25 Purchased ,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 ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supp

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):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies,
4; and office supplies, . 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 ,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 0 cash.
10 Purchased ,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 ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an 4 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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is
,890).
17 Purchased ,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 ,850 (cost is ,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, ,120; store supplies,
0; and office supplies, 0. Invoice dated May 24, terms n10 EOM.
25 Purchased ,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 ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supp

I am a CPA with 3 years of experience in tax preparation. I am trying to plan my future and career. Any other CPAs / lawyers that can help share opinions or their stories please help.

I do not know if I want to eventually open my own tax service, or somehow narrow my focus to large companies and/or transactions. With this approach I would not be stuck in the "corporate world" and "office politics". I would work hard but reap all of the results. – I guess I could do tax or go to law school and be an estate/trust attorney, or bankruptcy, business formations, something to leverage my accounting background.

On another note, maybe I should head for the industry and work toward executive level opportunities in the future.

Any input is appreciated. I’m still not sure what it takes to reach the goal I decide or what to expect.

Thank you.

Mr. Accountant

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):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies, 4; and office supplies, . Invoice dated May 4, terms n10 EOM.
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 ,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 0 cash.
10 Purchased ,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 ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210, n30.
12 Received an 4 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, ,320, and office salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is 1,890).
17 Purchased ,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 ,850 (cost is ,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, ,120; store supplies, 0; and office supplies, 0. Invoice dated May 24, terms n10 EOM.
25 Purchased ,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 ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supplies inventory, ,632.
c. Ending office supplies inventory, 4.
d. Depreciation of store equipment, 7.
e. Depreciation of office equipment, 9.
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

yes, I also owned an S corp for 13 yrs.
..from the health care bill claiming its for "wealthy americans". Are you Ignorant or just lying?

Why would you tax businesses with the economy in the state it is now? How is that possibly a good idea, are you trying to set a new record for unemployment or health insurance reform?
>The shareholders of Sub-S corporations are taxed as individuals on thier share of corporate income.

Shucking and jiving to the end I see. Its a tax on busineses, you lie. I guess that depends on the definition of "lie" tho doesnt it.
I’ve noticed that people who know nothing will often seize on a fact that they don’t understand and act like it proves a point that it doesn’t prove.

I’ve noticed ppl that have no defense like to generalize.
Mr accountant, where does money from "profit" go in a business in growth mode? What effect on cashflow into the next year will higher tax have on "profits to an individual shareholder" (those are typically Business owners for those of you who dont understand that) have and what is the likely effect on that businesses growth?

Business tax.
and the point is the effect not the nominclature.

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 2_10, n_30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies,
4; and office supplies, . Invoice dated May 4, terms n_10 EOM.
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 ,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 0 cash.
10 Purchased ,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n_10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2_10,
n_30.
12 Received an 4 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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is
,890).
17 Purchased ,650 of merchandise from Fink Corp., invoice dated May 14, terms 2_10,
n_60.
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 ,850 (cost is ,990), terms
2_10, n_60.
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, ,120; store supplies,
0; and office supplies, 0. Invoice dated May 24, terms n_10 EOM.
25 Purchased ,080 of merchandise from Peyton Products, invoice dated May 23, terms 2_10,
n_30.
26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supplies inventory, ,632.
c. Ending office supplies inventory, 4.
d. Depreciation of store equipment, 7.
e. Depreciation of office equipment, 9.
Prepare and post adjusting and closing entries.
3. Prepare a May 2005 multiple-step income statement, a May 2005 statement

I recently inherited a great deal of money from the passing of my aunt, I don’t wanna say a specific number but lets just say I am a little over ,000 in debt and I will have it paid all off by the end of the week plus still have money to live for the next I’d say 15 years or more if I invest right. my question is how do I pay off the debt to a company that is no longer in business?? I paid a accountant to pull my credit report and find everything, even the smallest thing that could effect my score. There are a few companies on there that don’t even exist as a business anymore, like I had an amp’d mobile cell phone years ago and everyone knows amp’d they filed for bankruptcy in 07 I think and nobody wanted to purchase their debt being as almost 80,000 of their subscribers weren’t paying their bill, how do I pay that if they don’t even have a way to reach them anymore and other companies like I took out a loan from a financial loan company that was up and coming in 2002 and now they aren’t even around, how do I get those things off of my credit report if I cant pay them?? Please help, I plan on opening a nightclub with in the next year and I only wanna use half of the money I inherited and get a bank loan for the rest but even with my new found fortune a bank will pull my credit score or something and still look at me funny or not do business at all with me. Thanks in advance.

I would like to know if you could help with my accounting. I have been working on this for three days and have yet to figure it all out. Could you please assist me? I am stuck on the cash disbursements journal, store supplies and office supplies on the general ledger, and the office and store supplies expense on the general ledger. I will be so grateful for your assistance.

(If the Working Papers that accompany this book are not available, omit this comprehensive problem.)
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 2_10, n_30 unless stated differently):

May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies,
4; and office supplies, . Invoice dated May 4, terms n_10 EOM.
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 ,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 0 cash.
10 Purchased ,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n_10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2_10,
n_30.
12 Received an 4 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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is
,890).
17 Purchased ,650 of merchandise from Fink Corp., invoice dated May 14, terms 2_10,
n_60.
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 ,850 (cost is ,990), terms
2_10, n_60.
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, ,120; store supplies,
0; and office supplies, 0. Invoice dated May 24, terms n_10 EOM.
25 Purchased ,080 of merchandise from Peyton Products, invoice dated May 23, terms 2_10,
n_30.
26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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 Bala

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):

May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).

2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was ,725.

3 Received a 8 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, ,072; store supplies, 4; and office supplies, . Invoice dated May 4, terms n10 EOM.

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 ,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 0 cash.

10 Purchased ,074 of office equipment on credit from Gear Supply Co., invoice dated May 10, terms n/10 EOM.

11 Received payment from Hensel Company for the May 2 sale less the discount.

11 Purchased ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30.

12 Received an 4 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, ,320, and office salaries, ,150. Cashed the check and paid the employees.

15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is ,890).

17 Purchased ,650 of merchandise from Fink Corp., invoice dated May 14, terms 2/10, n/60.

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 ,850 (cost is ,990), terms 2/10, n/60.

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, ,120; store supplies, 0; and office supplies, 0. Invoice dated May 24, terms n/10 EOM.

25 Purchased ,080 of merchandise from Peyton Products, invoice dated May 23, terms 2/10, n/30.

26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for ,210 (cost is ,230).

26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.

29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office salaries, ,150. Cashed the check and paid the employees.

31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supplies inventory, ,632.
c. Ending office supplies inventory, 4.
d. Depreciation of store equipment, 7.
e. Depreciation of office equipment, 9.
Prepare and post adjusting
6 days ago

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 2_10, n_30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies, 4; and office supplies, . Invoice dated May 4, terms n_10 EOM.
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 ,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 0 cash.
10 Purchased ,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n_10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2_10, n_30.
12 Received an 4 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, ,320, and office salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is ,890).
17 Purchased ,650 of merchandise from Fink Corp., invoice dated May 14, terms 2_10, n_60.
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 ,850 (cost is ,990), terms 2_10, n_60.
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, ,120; store supplies, 0; and office supplies, 0. Invoice dated May 24, terms n_10 EOM.
25 Purchased ,080 of merchandise from Peyton Products, invoice dated May 23, terms 2_10, n_30.
26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supplies inventory, ,632.
c. Ending office supplies inventory, 4.
d. Depreciation of store equipment, 7.
e. Depreciat

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):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, ,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 ,100 (cost is ,100).
2 Issued a 5 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was ,725.
3 Received a 8 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, ,072; store supplies,
4; and office supplies, . 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 ,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 0 cash.
10 Purchased ,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 ,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an 4 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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are ,220 (cost is ,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 ,990 (cost is
,890).
17 Purchased ,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 ,850 (cost is ,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, ,120; store supplies,
0; and office supplies, 0. Invoice dated May 24, terms n10 EOM.
25 Purchased ,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 ,210 (cost is ,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, ,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw ,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, ,320, and office
salaries, ,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are ,052 (cost is ,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, 3.
b. Ending store supp

I just found out I owe roughly between ,000 to ,000 in state and federal income taxes for 2006 from a failed business venture. I checked this with an accountant, and I definitely owe the taxes. The company already filed it’s return and my K-1, showing I had the income, so the IRS theoretically knows about it. I’m 24, have no assets or property, already have ,000 in credit card debt, and have been unemployed for over seven months. I’m starting a job next month that will pay me ,900 a month, so I was excited to get back on my feet. But I’m worried that paying off the IRS debt in installments will wreck me and ruin any chances I have to save up.

1) If I set up a payment arrangement, how much should I expect to pay per month, and for how long?
2)I haven’t filed my return yet (got extension). How long b4 IRS comes after me?
3)What happens (realistically) if I ignore it? Could I claim Chapter 7 to erase it (making only ,000 a year)?

I really need realistic advice here.Thanks!

I filed chapter 7 bankruptcy few months ago, and now IRS sent me letter said I owe income tax because I no longer owe the amount which was wiped out. What should I do about this? My lawyer said I should go to my accountant who prepared the tax for me and ask them to dispute the "income" I owe IRS. But I couldn’t find my accountant anymore, I think they are already out of business. What should I do to get rid of this "income" tax ?
Thanks for the answering, I just want to clarify that I didn’t owe any income tax. The letter IRS sent me said that the income tax I owed is because the cancellation of debt.