Blue Spruce Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Blue Spruce's ledger showed Cash of $8,100 and Common Shares of $8,100. May 1 Purchased merchandise on account from Hilton Wholesale Supply for 100, terms 2/10, n/30. 2 Sold merchandise on account for $4,100, terms 3/10, n/30. The cost of the merchandise sold was $3,090. 5 Received credit from Hilton Wholesale Supply for merchandise returned $300. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hilton Wholesale Supply in full, less discount. 11 Purchased supplies for cash $820. 12 Purchased merchandise for cash $2,650. 15 Received $220 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Northern Distributors for $2,700, terms 2/10, n/30. 19 Paid freight on May 17 purchase $230. 24 Sold merchandise for cash $5,610. The cost of the merchandise sold was $4,270. 25 Purchased merchandise from Toolware Inc. for $840, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $140. The returned merchandise was returned to inventory and had cost $80. 31 Sold merchandise on account for $1,230, terms n/30. The cost of the merchandise sold was $870.
Blue Spruce Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Blue Spruce's ledger showed Cash of $8,100 and Common Shares of $8,100. May 1 Purchased merchandise on account from Hilton Wholesale Supply for 100, terms 2/10, n/30. 2 Sold merchandise on account for $4,100, terms 3/10, n/30. The cost of the merchandise sold was $3,090. 5 Received credit from Hilton Wholesale Supply for merchandise returned $300. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Hilton Wholesale Supply in full, less discount. 11 Purchased supplies for cash $820. 12 Purchased merchandise for cash $2,650. 15 Received $220 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Northern Distributors for $2,700, terms 2/10, n/30. 19 Paid freight on May 17 purchase $230. 24 Sold merchandise for cash $5,610. The cost of the merchandise sold was $4,270. 25 Purchased merchandise from Toolware Inc. for $840, terms 3/10, n/30. 27 Paid Northern Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $140. The returned merchandise was returned to inventory and had cost $80. 31 Sold merchandise on account for $1,230, terms n/30. The cost of the merchandise sold was $870.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blue Spruce Hardware Store Inc. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Blue Spruce's ledger showed Cash of $8,100 and
Common Shares of $8,100.
May 1
Purchased merchandise on account from Hilton Wholesale Supply for $8,100, terms 2/10, n/30.
2
Sold merchandise on account for $4,100, terms 3/10, n/30. The cost of the merchandise sold was $3,090.
5
Received credit from Hilton Wholesale Supply for merchandise returned $300.
9
Received collections in full, less discounts, from customers billed on May 2.
10
Paid Hilton Wholesale Supply in full, less discount.
11
Purchased supplies for cash $820.
12
Purchased merchandise for cash $2,650.
15
Received $220 refund for return of poor-quality merchandise from supplier on cash purchase.
17
Purchased merchandise from Northern Distributors for $2,700, terms 2/10, n/30.
19
Paid freight on May 17 purchase $230.
24
Sold merchandise for cash $5,610. The cost of the merchandise sold was $4,270.
25
Purchased merchandise from Toolware Inc. for $840, terms 3/10, n/30.
27
Paid Northern Distributors in full, less discount.
29
Made refunds to cash customers for returned merchandise $140. The returned merchandise was returned to inventory and had cost $80.
31
Sold merchandise on account for $1,230, terms n/30. The cost of the merchandise sold was $870.
Transcribed Image Text:Prepare an income statement through gross profit for the month of May 2018.
BLUE SPRUCE HARDWARE STORE INC.
Income Statement (Partial)
va
$
$
$
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