8:51 AM 85% OO Ooredoo eduoasis.mcbs.edu.om 1 of 2 P5-2B Newman Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Newman showed Cash of SS,000 and Newman, Capital of $5,000. May 1 Purchased merchandise on account from Jerry's Wholesale Supply S4.200,terms210,n130. 2 Sold merchandise on account $2,100, terms 1/10, 30. The cost of the merchandise sold was $1300. 5 Received credit from Jerry's Wholesale Supply for merchandise returned S300. 9 Received collections in full less discounts, from customers billed on sales of S2,100 on May 2. 10 Paid Jerry's Wholesale Supply in full, less discount. 11 Purchased supplies for cash SA00. 12 Purchased merchandise for cash S1400. 15 Received refund for poor quality merchandise from supplieron cash purchase S150. 17 Purchased merchandise from Cosmo Distributors si 300. FOB shipping point, terms 2/10, n/30. 19 Paid freight on May 17 purchase $130. 24 Sold merchandise for cash$3,200.The merchandise sold had a cost of$2,000. 25 Purchased merchandise from Costanza, Inc. $550, FOB destination, terms 2/10, n/30. 27 Paid Cosmo Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise S60. The returned mer. chandise had a scrap value of S10. 31 Sold merchandise on account S900, terms n30 The cost ofthe merchandisesold was$560. Newman Hardware's chart of accounts includes the following: No. 101 Cash, No 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 126 Supplies,No.201 Accounts Payable, No.301 Newman, Sales, No.412 Sales Returns and Allowances No.414 Sales Discounts No. 505 Cost of Goods Sold. (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 jour- nal reference.) (e) Prepare an income statement through gross profit for the month of May 2010