Gardner Company engaged in the following transactions in June 1999, the company's first month of operations:

June 1 Stockholders invested \(\$ 384,000\) cash and \(\$ 144,000\) of merchandise inventory in the business in exchange for capital stock.

3 Merchandise was purchased on account, \(\$ 192,000\); terms \(2 / 10, n / 30\), FOB shipping point, freight collect.

4 Paid freight on the June 3 purchase, \(\$ 5,280\).

7 Merchandise was purchased on account, \(\$ 96,000\); terms \(2 / 10, n / 30\), FOB destination, freight prepaid.

10 Sold merchandise on account, \(\$ 230,400\); terms \(2 / 10, \mathrm{n} / 30\), FOB shipping point, freight collect.

11 Returned \(\$ 28,800\) of the merchandise purchased on June 3.

12 Paid the amount due on the purchase of June 3.

13 Sold merchandise on account, \(\$ 240,000\); terms \(2 / 10, \mathrm{n} / 30\), FOB destination, freight prepaid.

14 Paid freight on sale of June 13, \$14,400.

20 Paid the amount due on the purchase of June 7.

\(21 \$ 48,000\) of the goods sold on June 13 were returned for credit.

22 Received the amount due on sale of June 13.

25 Received the amount due on sale of June 10.

29 Paid rent for the administration building for June, \(\$ 19,200\).

30 Paid sales salaries of \(\$ 57,600\) for June.

30 Purchased merchandise on account, \(\$ 48,000\); terms \(2 / 10, n / 30\), FOB destination, freight prepaid.

The inventory on hand on June 30 was \(\$ 288,000\).

a. Prepare journal entries for the transactions.

b. Post the journal entries to the proper ledger accounts. Use the account numbers in the chart of accounts on the inside covers of the text. Assume that all postings are from page 10 of the general journal.

c. Prepare a trial balance as of June 30, 1999 .

d. Prepare a classified income statement for the month ended June 30, 1999. No adjusting entries are needed