Business Bankruptcy Law | Small Business Bankruptcy Laws

I have not received an official notice from a creditor or the court, but I got several letters in the mail from cracker-jack legal services saying a lawsuit had been filed in my county against me and they offer Chapter 7 and 13 services to get me out of it.

I did have a business card left on my door from the county Marshall but did not say in what it is in regards to and I was served no official papers. I have not received any official papers/documents or notice from the creditor or the court about a lawsuit and there are no court records on file right now for me at the county courthouse, I checked yesterday after getting the card from the Marshall.

If I am being sued, I have to get an official notice from the court first, correct? If so, once I get that notice, do I have options to settle with the creditor before it goes to court? I really am not sure what it is even for as the only cards I have that went to collections were paid off or charged off years ago.

Tribune Co. filed its latest plan to emerge from Chapter 11 protection late Friday, hoping it had sufficient creditor backing to win a Delaware bankruptcy court’s confirmation and end its contentious two-year bankruptcy.

But the Chicago-based media firm is by no means assured of success even though it filed the reorganization plan jointly with the Official Committee of Unsecured Creditors, JPMorgan Chase and hedge funds Oaktree Capital Management and Angelo, Gordon & Co.

By Friday, other creditors seeking a richer payout from the bankruptcy estate are expected to present competing plans for concluding the restructuring, which has been rocked by shifting alliances and pitched legal battles over how much creditors should receive and who should be held responsible for paying them.Tribune presents second plan to exit Chapter 11

http://www.chicagotribune.com/business/feed/ct-biz-1024-tribune-reorg-20101023,0,7927509.story

Are they "too big to fail" or will Nancy Pelosi and Obama bail them out? Speaks volumes on how people are sick and tired of the propaganda from the liberal left looney tunes.

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
,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 accounts receivable and accounts payable

I had the bad luck of doing business with a very vicious, ruthless, and crooked creditor. He used every single tactic he could to get money out of me, but i kept resisting him. He placed over 67 calls a day using an automated voice. He then bombarded my email with demands to pay. he totally flooded my inbox with like 40,000 mails demanding payment. I told him i have bankruptcy lawyer and he responded using abuses, "no you don’t, you bus turd" My bankruptcy lawyer contacted this creditor asking him to stop placing calls. Then this creditor sued me in court, KNOWING i have a bankruptcy lawyer. I physically had to go to court just to tell i have lawyer. His objective was to stress me out, by making me go to court because he knew it bankruptcy filing will discharge the debt. Then he again sued me in court of appeals, saying, "proof of bankruptcy still not shown". Second time my bankruptcy lawyer contacted court and his suit was thrown out. Then i filed chapter 7 bankruptcy. However, even after filing chapter 7 this vicious creditor keeps reporting to collection agency that i’m seriously delinquent. I checked my credit report and all other creditors whose debt was discharged no more contact the credit bureau. But this creditor alone keeps doing it out of pure vengeance.

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
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 accounts receivable and accounts payable

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
,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 accounts receivable and accounts payable

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

I am a creditor in a bankruptcy case. I believe the debtor is trying to dismiss the bankruptcy or to convert it to Ch. 7 from Ch. 11. She lives in a million dollar home, and owns millions in properties. She owes my small business ,650. We make less than ,000/yr and if I were to find an attorney to take the case without me being able to pay first, they would end up with the whole amount that we are owed. My husband put up soffit on a million dollar house, and paid the materials and the labor. This is the balance owed to him. I am required to respond to this, but I don’t know how to. I do not want her to get away with this, because she is greedy, abusive, and lousy. Should I respond that I want a means test performed? I really need some help here. This is in Mississippi, if that helps.

A total of 0 or more in money or property which is paid to a creditor that is a relative or insider (certain business associates) within a year prior to filing is a preference. The Trustee may recover preferences and divide the money between all creditors. (In Chapter 13, the debtor may be able to prevent the Trustee from going after the relative by increasing the amount paid into the plan.)

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 accounts receivable and accounts payable.

I have most of it figured out, but am having trouble with the work sheet.

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
,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 accounts receivable and accounts payable.

No small business can avoid creditor’s committees under chapter 11. True are false

I own a small business. Another small business owner owes my company about 00 — too little to sue, probably, and he is trying to pay me back, very slowly. He is probably close to bankruptcy. What I would like is to assure myself that I’ll be among the ones to collect money if he DOES go under- should I write a letter asking to be listed as a creditor? MUST I sue to get that status? He is out of state and a lawsuit would cost plenty. Thanks!

I started financing a hyndai accent through chrysler financial in October 2008. I have paid on this loan every month since we started financing this vehicle. After Chrysler announced that they were filing bankruptcy we are still receiving our statements through Chrysler. Do I still have to pay this bill? If I do, what makes me entitled to pay this because in a small business bankruptcy, a client that received services doesn’t necessarily have to pay the small business filing the bankruptcy (example used, a family member’s business filed bankruptcy and was forced to close the doors). Why would another creditor or business want to take debt for the probable risk of losing more money, especially in this economy. Is there a way to get out of paying this possible debt or have the loan amount and payments lowered? Are there any perks in this situation?

I am a business developer, But I am in need of some australian legal advice. One of my clients is being sued by a creditor(Fairfax Newspapers) for an unpaid advertising account(The client did try to organize payment plan, but requested that their advertisement remain printed so that they may have the funds to continue to make payments, but was refused). Their business went belly-up during Christmas last year, and they sadly have not recuperated from the blow, and are suffering some heavy financial troubles. They are young, and stuck, and I am inclined to tell them to apply for bankruptcy to stop the creditors from pursuing them legally. What do law gurus say about this?

Now that congress has passed the new bankruptcy laws that do not allow credit obligations to be totally wiped clean, this has given creditors free reign to file lawsuits for bad credit. The amount of lawsuits are jumping high as it is forcing people to file bankruptcy which under the new rules forces them to pay regardless. This use to be bad policy for creditors as it created bad business for consumers.

Do creditors have right to sue consumers with money they have made off of consumers? Should credit be regarded as an investment made by a creditor to a consumer and if that investment goes bad to not cry about it? Are in likewise manner people allowed to sue companies and stock brokers if our investments are lost for one reason or another? So if that cannot be allowed should corporations be allowed to sue consumers for their own bad investments?

Should this be allowed or should congress amend the law to disallow lawsuits for credit obligations?

We live in Washington. We own a home that has 95K in equity – but we owe the IRS about 85K. We have gone through the pre bankruptcy counseling and they say we HAVE to file – because we are in the hole 6K per month (long story – I owned a business and got very ill). My income is commission only – and I don’t have commissions coming in which is why I need to file Pro Se’. Basically – do I let the trustee sell my house? Do I need an attorney to make sure the taxes are discharged (they have been owing for over 3 years and over 2 years since I’ve filed – and also the 3rd rule I’ve passed too) because that would be horrible to walk away without them discharged. I have 2 cars I want to give back. If I file now – how long can i live in the home and when do I need to surrender the cars ? I don’t want to milk the system – I just want to find a place to live and have enough time to earn a commission (should be 30 days away)
They may have changed the rules – but I know you can do it pro se. The reason I would even try is I used to be a creditor rep that goes to court and I reviewed every petition to find fraud. I know most things – it’s just the tax lien stuff and the sale of the home I don’t. My attorney wants 00 up front. It is so embarrassing – I used to make K per week – and now I’m reduced to not being able to pay an attorney. Life goes on.

I own a bridal store that I bought in 2006, it has not profited since. I have not received pay roll since I purchased the store. Now that the economy has gotten so bad and with debt to creditor and suppliers, I am thinking of claiming bankruptcy. It is a sole prop. and I am planning also to claim personal bankruptcy. I found out my step mom has cancer again and I’ve been so stressed with the business and the cancer issue, that I would like to claim bankruptcy.
What is the process in ch 7 bankruptcy? mainly the trustee part. Does it mean that I no longer need to open the business and someone else will be at the store selling off all our gowns and basically closing the store and paying off our debt? what is the time line for that? Also, I feel so embarrassed that I can’t pay off my debt in the business, do I contact my creditors and suppliers or does someone else contact them?
Thank you for your help. I am planning to talk to a lawyer soon. Thanks again.

Have a small business and have a customer that has run up a debt and their company is now filing bankruptcy. How does a business go about collecting from the business. We are a small business also there has to be laws to help protect us also. Need some advice on how to legally go about being paid as a creditor. Also if a business says they are filing bankruptcy is it public record and what sites show this record.

Party A lost a breach of contract case in circuit court and now owes over a quarter million in business debt. Party A then files bankruptcy.

Can the attorney for Party B (the creditor to which that money is owed) prevent, overturn, reverse the bankruptcy for Party A?
Party A has approx. 00 worth of assets and no means of paying off the debt.