Business Bankruptcy Law | Small Business Bankruptcy Laws

I have always had an interest in going to law school. I will be completing my undergraduate studies in about five months. I am just curious as to whether there are any scholarships and grants available to law students. My parents do not have money to pay for law school, nor do I, especially considering the fact that law students are permitted to work no more than 20 hours per week, so I have heard. I am not considering any top-tier (expensive) law school programs, merely law schools such as DePaul University or Loyola University, both located in Chicago, IL, or any other inexpensive law schools. Any suggestions would be helpful.

Just for some background info:
I am getting my bachelor’s in business administration with a concentration in management. I am currently working for a bankruptcy and foreclosure law firm as a legal assistant. I have plans to attend graduate school for a master’s in accountancy degree. However, as I have stated, I have always had an interest in attending law school, just don’t think I can afford it. Thus, I picked accounting which I do love dearly, but not as much as law!

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?

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

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 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