Question-2: Copple Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Copple showed Cash of Tk.5,000 and Share Capital—Ordinary of Tk.5,000. May 1: Purchased merchandise on account from Nute’s Wholesale Supply Tk.4,200, terms 2/10, n/30. May 2: Sold merchandise on account Tk.2,300, terms 1/10, n/30. The cost of the merchandise sold was Tk.1,300. May 5: Received credit from Nute’s Wholesale Supply for merchandise returned Tk.500. May 9: Received collections in full, less discounts, from customers billed on sales of Tk.2,300 on May 2. May 10: Paid Nute’s Wholesale Supply in full, less discount. May 11: Purchased supplies for cash Tk.400. May 12: Purchased merchandise for cash Tk.1,400. May 15: Received refund for poor quality merchandise from supplier on cash purchase Tk.150. May 17: Purchased merchandise from Sherrick Distributors Tk.1,300, FOB shipping point terms 2/10, n/30. May 19: Paid freight on May 17 purchase Tk.130. May 24: Sold merchandise for cash Tk.3,200. The merchandise sold had a cost of Tk.2,000. May 25: Purchased merchandise from Herbert, Inc. Tk.620, FOB destination, terms 2/10, n/30. May 27: Paid Sherrick Distributors in full, less discount. May 29: Made refunds to cash customers for defective merchandise Tk.90. The returned merchandise had a fair value of Tk.40. May 31: Sold merchandise on account Tk.1,000 terms n/30. The cost of the merchandise sold was Tk.560. Instructions: (a) Journalize the transactions using a perpetual inventory system. (b) Enter the beginning cash and share capital—ordinary balances and post the transactions. (c) Prepare an income statement through gross profit for the month of May 2014.
Question-2: Copple Hardware Store completed the following merchandising transactions in
the month of May. At the beginning of May, the ledger of Copple showed Cash of Tk.5,000
and Share Capital—Ordinary of Tk.5,000.
May 1: Purchased merchandise on account from Nute’s Wholesale Supply Tk.4,200, terms
2/10, n/30.
May 2: Sold merchandise on account Tk.2,300, terms 1/10, n/30. The cost of the merchandise
sold was Tk.1,300.
May 5: Received credit from Nute’s Wholesale Supply for merchandise returned Tk.500.
May 9: Received collections in full, less discounts, from customers billed on sales of
Tk.2,300 on May 2.
May 10: Paid Nute’s Wholesale Supply in full, less discount.
May 11: Purchased supplies for cash Tk.400.
May 12: Purchased merchandise for cash Tk.1,400.
May 15: Received refund for poor quality merchandise from supplier on cash purchase
Tk.150.
May 17: Purchased merchandise from Sherrick Distributors Tk.1,300, FOB shipping point
terms 2/10, n/30.
May 19: Paid freight on May 17 purchase Tk.130.
May 24: Sold merchandise for cash Tk.3,200. The merchandise sold had a cost of Tk.2,000.
May 25: Purchased merchandise from Herbert, Inc. Tk.620, FOB destination, terms 2/10,
n/30.
May 27: Paid Sherrick Distributors in full, less discount.
May 29: Made refunds to cash customers for defective merchandise Tk.90. The returned
merchandise had a fair value of Tk.40.
May 31: Sold merchandise on account Tk.1,000 terms n/30. The cost of the merchandise sold
was Tk.560.
Instructions:
(a) Journalize the transactions using a perpetual inventory system.
(b) Enter the beginning cash and share capital—ordinary balances and
(c) Prepare an income statement through gross profit for the month of May 2014.
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