Business Bankruptcy Law | Small Business Bankruptcy Laws

Assume it is Monday, May 1, the first business day of the month, and you have just been hired? May 1 Issued?
Assume it is Monday, May 1, the first business day of the month, and you have just been hired?

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 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 31, 2005, classified balance sheet. 4. Prepa

In Chapter 8, Crusoe is grateful to God and realizes what important lesson?
He realizes he is sinful.
He realizes that the animals love him.
He realizes he will be saved soon.
He realizes he is happier on his island than he had been before.

At the end of Chapter 7, Crusoe tells his reader "another business took me up more time than it could be imagined I could spare." The chapter ends this way to create ___________. (Points : 1)
irony
suspense
characterization
conflict

6. Read Chapters 6 through 11 of Robinson Crusoe. Then match each word with its correct definition.
(Points : 5)
Answer Potential Matches:
A: man-eaters 1 : habitation
B: a canoe-like boat 2 : periagua
C: the first word he hears from another 3 : cannibals
D: sickness 4 : ague
E: living quarters 5 : poll

I really need help out in this question.

Joseph has lately graduated from a university with a degree in BA, but wasn’t be able to find a job. He has decided to file a Chapter 7 petition with the Bankruptcy Court. He has the following assets:

a. a 0 ring.
b. 00 in equity in a condominium secured by a mortgage.
c. 0 a week in unemployment benefits after being laid off from his job.
d. 0 in business administration books, including a hardly used copy of Business Law.
e. a ,000 retainer for his teeth prescribed by his orthodontist.
f. ,200 in equity in a new car which he purchased with a loan from the bank.

His debts are as follows:

a. ,000 in student loans.
b. ,000 to the bank for his car. The loan is secured by the car.
c. ,000 in unsecured credit card debts.

What can he keep. What will each of the creditors receive? Explain
State: ALABAMA

A friend of mine is being sued by a collection agency for a very small amount. he has not been officially served notice by the county yet but knows that the suit has been filed because he was contacted by a group mailer of legal offices offering to help him file chapter 7 or 13 bankruptcy. One of them included the case number which he looked up online on the court records page.

He is going out of town for almost a week on business and will not be home. His house is currently for sale and no one is there. He also cannot identify the collection agency on his credit report so he thinks it is bogus. How long do they have to officially serve him before the lawsuit is dismissed? I have heard 30 days, but do not know for sure and I know it varies from state to state. If they have tried to personally serve him and he is not home will they send it via mail? He is investigating his credit report and the collection agency to see if it is legit and plans to settle before the hearing if so, but just wants to make sure if he is not there to be served that they cannot proceed with the case.

My husband and I are hoping to make a home purchase over the next few months and I have some questions and concerns about VA loan eligibility.

A little background: My husband is a 10 year veteran from the Gulf War era. He is 50% disabled, and is currently in the VA vocational rehabilitation program, and is attending college full time. His VA disability payments are around 0.00 per month. Which is easily documented income, although it isn’t very much.

My husband and I also own our own business, and the company DBA is listed under my name only. However, we both work for our company. Over the last few years, I have "written off’ a lot of business expenses. After those expenses were deducted, my net income is not that much. I have to submit 2 years worth of tax returns to the lender for the pre-qualification process. I am concerned that this net income deficiency is going to hurt our chances,

Our credit ratings are both right around 600, which is considered fair credit I suppose. Neither one of us have any foreclosures or major credit problems. I have spent the last 6 months cleaning up my credit by paying off all of the little stuff on my report. My husband filed for chapter 7 almost 7 years ago, The home he had purchased with his x wife (also a va loan) was included in the bankruptcy.

We have approximately 00 to go towards closing costs, and are looking to purchase a small home in the 0,000 to 5,000 price range.

What do you think our chances of getting a VA loan approval are?

For lack of a better term i was forced to take out a mortgage last year on my home that was paid for. The terms and percentages were awful but thats besides the point.

My income at the time was sufficent to pay my bills and the mortgage.

I ran a successful business for a little over two years until 4 months ago when things went downhill. My mortgage payment is more than most people make in my area in 2-3 paychecks and now im unemployed with a SMALL list of other monthly bills besides the mortgage. I do have about k in other unsecured debt from the business and other unsecured creditors from when i was young that i never took care of.

I have thought about bankruptcy, chapter 13 is a no-go mostly because i cant afford the mortgage payments now so why would i waste my time with a 13?Otherwise it could work,but otherwise i dont really need a bankruptcy if were not including the house mortgage because i could just set up monthly payments with my creditors at a small payment.
7 minutes ago – 3 days left to answer.
my monthly expenses are slim so im not worried about that.

My problem seems to stem from my home, i have about 40k worth of equity in a 117k home.

With that kind of equity, it really does not make sense to file a chapter 7 because in my state you lose all equity besides 5k no matter what.

It really doesnt make sense to do a 13 because as already stated i cant afford the payments now,much less the payments to all my creditors plus the mortgage.

And the only other options are selling, of which is not really an option because foreclosure has already been initiated.

Or a deed in lieu of foreclosure, but then im giving them all of my equity for "free" although the foreclosure would likely not show up on my credit report and i could begin to repair the other damage.It would be faster to do this than to wait 10 years for a BK to come off the credit or 7 years for a foreclosure to come off.

OR just let it be foreclosed on……thats not appealing at all ofcourse.
ADVICE?

I have been going through a divorce for 4 yrs now. We separated May 2005. He has had temporary custody of our children since Oct 05. I caught my babysitter abusing my 4 yr old son on tape while I was at work. I also have a daughter who was 3, but not on the tape. DHR took my children and I have been fighting to get them back ever since. I feel I was not granted due process. Motion after motion was filed, and usually with no response. My Ex has done everything he could to cause us to lose everything we own. He filed chapter 13, that failed. He moved in with his girlfriend and her 3 children. He rubbed this in my face. He has lived with her for over a year, but still nothing was done. He has filed chapter 7 now, through his business. Motions were filed and still the judge done nothing. On May 18,2009 we had a hearing. Instead of testimony being given, we were directed to the conference room,and we all sat done and discuss all issues. We had only one day in court where testimony was given by him. That was august 2007. I have not had my day in court, so I feel I have been denied my chance to prove myself. I was not even asked what I wanted to do. I have recently found out that several of his decisions have been reversed by the supreme court. I do not have the money to go that far. I want to have him removed permanently.Can anyone please help?

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 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 31, 2005, classified balance sheet.
4. Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing
schedules of both accou

I am considering filing for bankruptcy, but I have cosigners on equipment I leased for my business. Is there a way to file without involving my cosigners? I would be filing for personal bankruptcy and possibly for my business also. My cosigners are family members, so I don’t want to screw them over. Would they be covered under chapter 7 or 13?

It is with the greatest regret, on behalf of our Board, that we must announce that Air America Media is ceasing its live programming operations as of this afternoon, and that the Company will file soon under Chapter 7 of the Bankruptcy Code to carry out an orderly winding-down of the business.

The very difficult economic environment has had a significant impact on Air America’s business. This past year has seen a "perfect storm" in the media industry generally. National and local advertising revenues have fallen drastically, causing many media companies nationwide to fold or seek bankruptcy protection. From large to small, recent bankruptcies like Citadel Broadcasting and closures like that of the industry’s long-time trade publication Radio and Records have signaled that these are very difficult and rapidly changing times.
http://airamerica.com/

Meanwhile Fox News has reached new levels of support and viewership 0-o-0

I received a letter from the SBA(small business administration) that says that my debt to them can be offset. I filed a personal chapter 7 and included it in my debt, but when I talked to them they said that it can be collected upon through the business since I did not close it. The fact is that I have other lines of credit that I am paying that was not originally in the bankruptcy that I personally guaranteed. So I cannot really just fold the LLC without the new debt being thrown on my personal credit now. The debt was already discharged two years ago from me personally.

I found this statement on the web: Disregarded entities are unique in that, although they are separate entities for legal purposes (thus affording us asset protection), they are treated as nonexistent for tax purposes.

If that is the case, can they take my refund? I am a single member LLC. But my income comes from a normal 9-5.

Thank you for taking the time to read my question. My wife and I have been married for 3 years, been together for 7 years. We have 3 small boys ages 1,3 and 5. I have been in jail (3 times) due to my wife calling on Domestic Violence, every time she was either pregnant in the last trimester, or after the birth of one of our boys, all cases were dismissed with prejudice against her. I never hurt or harmed her, she just went crazy. Twice she was intoxicated on wine, but the police took me away, because I am the man and she was pregnant.
In 2005 we started a small seafood business, she quit her job which had great Benefits (Starbucks) I asked her not too because of the burden of health insurance on a small business, we did great to start, but she insisted on overpaying us out of the company, also she wanted to buy a house so we also purchased a home 2 months into our new business. I was trying to make her happy. Since then our relationship went downhill, this is where I started feeling hopeless with our relationship, although I went through the court system and jail, I forgave and told myself to hold the family together.
In summer 2007 the money in company ran out and she told me that she wanted to separate, she took the kids and moved to her mothers home, I ended up having to file a chapter 7 personally, due to no money and Credit Card debt above 25000 dollars, I also have decided to surrender my home, because I can’t make the mortgage.

Currently, she is going to counseling for herself, I feel alienated because when I ask about ‘us’ the family and she and I, she says that she does not know. She moved out at the end of August, and she has not done anything for the sake of the family, but only for herself, I have talked to my parents about it and they want me to divorce her, they believe that sometime along the way of our lives, she decided that she just wanted a meal ticket, they want me to find someone that will work with me and love me.
Another important point I want to make is that my parents invested 20K, and her grandfather invested 50k into the company, this is how she and we maintained the lifestyle that is now falling apart. In the bankruptcy I listed my parents and her grandfather for protection. Recently she told me that we need to pay her grandfather back, but no mention of paying my parents, I wrote a letter to her grandparents wanting to know what the situation was with the loan they gave my wife, but they have not answered back. My wife wants me to pay her 500 per month for the next 6 years to pay back this loan, I don’t believe her, especially now without an answer to my letter sent to her grandparents. I feel that she is holding the relationship hostage to get her way.

Should I move on, I am only 37, I think that she has some mental and emotional issues, that only she can work on, I also feel used, I mean she left me right when all the money ran out, and left me to fix it.

I have written letters to her letting her know that I love her with no response.

My friends say that she has turned into a gold digger.

I need some arbitrary advice on this…

If I file chapter 7 or 13 will I lose my job? I know they told us when first apply that you couldn’t have a bankruptcy, but now that I got the job, can I be fired for this?

*1)Have you ever filed for bankruptcy?
Yes
No

*2)If so, why did you file for bankuptcy?
Gambling problem
Shopping problem
Job loss
Theft
Other (Please Specify):

*3)How old were you?
18-25
26-35
36-50
51-70
71-^

*4)How many credit cards did you have at the time?
1-3
4-7
8-11
12^

*5)Did you become debt free after declaring bankruptcy?
Yes
No
Other (Please Specify):

*6)What chapter of bankruptcy did you file for?
Chapter 7
Chapter 11
Chapter 13
Other (Please Specify):

*7)What was you marital status?
Single
Married
Divorced
Widowed

*8)What did you file bankruptcy under?
Business owner
Consumer
Other (Please Specify):

*9)Are you currently debt free?
No
Somewhat
Yes
Other (Please Specify):

*10)Was your credit scored extermily effected?
Somewhat
No
Yes
Other (Please Specify):

I worked for a company that laid us all off one day, and then filed for Chapter 11 bankruptcy the next day. No employee has received their last paycheck for time worked and it’s been more than 7 months. I know we are priority, but it seems highly likely that the company will end up filing for Chapter 7 (they are pretty much not doing any business right now and cannot even agree on a BK plan because they say they don’t have enough money) and that there won’t be enough money in the estate to pay us.
Many of us employees saw very skeptical things while working there, and it is rumored that the owner transferred money from the business into his personal account right before the bankruptcy. Are we able to sue the owner personally? And if so, do we have to wait until after we "officially" receive nothing?

For lack of a better term i was forced to take out a mortgage last year on my home that was paid for. The terms and percentages were awful but thats besides the point.

My income at the time was sufficent to pay my bills and the mortgage.

I ran a successful business for a little over two years until 4 months ago when things went downhill. My mortgage payment is more than most people make in my area in 2-3 paychecks and now im unemployed with a SMALL list of other monthly bills besides the mortgage. I do have about k in other unsecured debt from the business and other unsecured creditors from when i was young that i never took care of.

I have thought about bankruptcy, chapter 13 is a no-go mostly because i cant afford the mortgage payments now so why would i waste my time with a 13?Otherwise it could work,but otherwise i dont really need a bankruptcy if were not including the house mortgage because i could just set up monthly payments with my creditors at a small payment.
my monthly expenses are slim so im not worried about that.

My problem seems to stem from my home, i have about 40k worth of equity in a 117k home.

With that kind of equity, it really does not make sense to file a chapter 7 because in my state you lose all equity besides 5k no matter what.

It really doesnt make sense to do a 13 because as already stated i cant afford the payments now,much less the payments to all my creditors plus the mortgage.

And the only other options are selling, of which is not really an option because foreclosure has already been initiated.

Or a deed in lieu of foreclosure, but then im giving them all of my equity for "free" although the foreclosure would likely not show up on my credit report and i could begin to repair the other damage.It would be faster to do this than to wait 10 years for a BK to come off the credit or 7 years for a foreclosure to come off.

OR just let it be foreclosed on……thats not appealing at all ofcourse.
ADVICE?
Ok i dont think you guys are reading everything.

Selling the home is pretty much out of the question because of the mediocre or slow real estate market combined with the foreclosure that has already been initiated and would most likely only take 3-4 weeks to be final.

OK any other advice?

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 own five properties plus I own one semi and trailer, which is for my trucking business. I am really struggling and behind on almost everything, including all of the mortgages. (Canton, OH has no jobs and no one is paying their rent, plus trucking is obviously very slow right now). I filed Chapter 7 in July, 2002, so I think I am eligible again. Will they restructure all of the debt, or will they just seize all of my assets including my home, the truck/trailer, and rental properties? Will I be able to keep any personal property that I am current on payments for, like my truck and motorcycle? I work full time as construction manager, which is why I am concerned about losing these side ventures. Any input or sharing of experiences is welcome and appreciated.

I purchased a bike at a Honda dealership and they had me apply for a Honda card. I recently filed bankruptcy and all of a sudden a lien has been placed on the title. It is like a JC Penny’s card yet they put a lien on my title? My wife called the DMV a month ago and there was no lien. I used to be in the insurance business and normally they would have required me to carry full coverage but I was only required to carry liability. The DMV said that they assumed that Honda (GE Money Bank) had the lien all along but that isn’t true. I lost the title but when I bought the bike it HAD NO LIEN. It seems the GE is breaking the law. Heck, with the interest I paid for 5 years I already should have owned the bike. My Chapter 7 court is in a few days. What can I do? I fell like they have done something illegal and that the whole "card" thing was to get me to pay higher interest than Arkansas allows. I need this bike for transportation.