May 1 Purchased merchandise on account from Braun's Wholesale Supply for $4,200, terms 2/10, n/30. Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300. 2 5 9 10 11 12 15 17 19 24 25 27 29 31 Received credit from Braun's Wholesale Supply for merchandise returned $300. Received collections in full, less discounts, from customers billed on May 2. Paid Braun's Wholesale Supply in full, less discount. Purchased supplies for cash $400. Purchased merchandise for cash $1,400. Received $150 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise on account from Valley Distributors for $1,300, terms 2/10, n/30, FOB shipping point. Paid freight on May 17 purchase $130. Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. Purchased merchandise on account from Lumley, Inc. for $620, terms 2/10, n/30. Paid Valley Distributors in full, less discount. Made refunds to cash customers for returned merchandise $70. The returned merchandise cost $30. Sold merchandise on account for $1,000 terms n/30. The cost of the merchandise sold was $560. Renner Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Instructions a. Journalize the transactions using a perpetual inventory system. b. Enter the beginning cash and capital balances and post the transactions. (Use J1 for the journal reference.) c. Prepare an income statement through gross profit for the month of May 2022.
May 1 Purchased merchandise on account from Braun's Wholesale Supply for $4,200, terms 2/10, n/30. Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300. 2 5 9 10 11 12 15 17 19 24 25 27 29 31 Received credit from Braun's Wholesale Supply for merchandise returned $300. Received collections in full, less discounts, from customers billed on May 2. Paid Braun's Wholesale Supply in full, less discount. Purchased supplies for cash $400. Purchased merchandise for cash $1,400. Received $150 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise on account from Valley Distributors for $1,300, terms 2/10, n/30, FOB shipping point. Paid freight on May 17 purchase $130. Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. Purchased merchandise on account from Lumley, Inc. for $620, terms 2/10, n/30. Paid Valley Distributors in full, less discount. Made refunds to cash customers for returned merchandise $70. The returned merchandise cost $30. Sold merchandise on account for $1,000 terms n/30. The cost of the merchandise sold was $560. Renner Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Instructions a. Journalize the transactions using a perpetual inventory system. b. Enter the beginning cash and capital balances and post the transactions. (Use J1 for the journal reference.) c. Prepare an income statement through gross profit for the month of May 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Submit it in excel form
Transcribed Image Text:Journalize, post, and prepare
a partial income statement.
c. Gross profit $2,379
GLS
P5.2 (LO 2, 3, 5), AP Financial Statement Renner Hardware Store completed the following mer-
chandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash
of $5,000 and Owner's Capital of $5,000.
May 1
Purchased merchandise on account from Braun's Wholesale Supply for $4,200, terms
2/10, n/30.
Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold
was $1,300.
2
5
9
10
11
12
15
17
19
24
25
27
29
31
Received credit from Braun's Wholesale Supply for merchandise returned $300.
Received collections in full, less discounts, from customers billed on May 2.
Paid Braun's Wholesale Supply in full, less discount.
Purchased supplies for cash $400.
Purchased merchandise for cash $1,400.
Received $150 refund for return of poor-quality merchandise from supplier on cash
purchase.
Purchased merchandise on account from Valley Distributors for $1,300, terms 2/10, n/30,
FOB shipping point.
Paid freight on May 17 purchase $130.
Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000.
Purchased merchandise on account from Lumley, Inc. for $620, terms 2/10, n/30.
Paid Valley Distributors in full, less discount.
Made refunds to cash customers for returned merchandise $70. The returned merchandise
cost $30.
Sold merchandise on account for $1,000 terms n/30. The cost of the merchandise sold
was $560.
Renner Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable,
No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401
Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of
Goods Sold.
Instructions
a. Journalize the transactions using a perpetual inventory system.
b. Enter the beginning cash and capital balances and post the transactions. (Use J1 for the journal
reference.)
c. Prepare an income statement through gross profit for the month of May 2022.
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