ACC 1021 Mini Practice Set Project transactions Spring 2023 (Use the working papers provided by your instructor to work this project.) Scoops Ahoy Ice Cream Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Scoops Ahoy Ice Cream Co. are indicated in the working papers. Below are a series of transactions for Scoops Ahoy Ice Cream Co. for the month of May. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 43% of the sales price. Round all numbers to whole dollars. May. Sell merchandise on account to L. Sinclair $12,850, invoice no. 215, and to J. Hopper $15,225, 3 invoice no. 216. Purchase merchandise from B. Newby $15,000 and M. Brenner $22,500, terms n/30. 7 Receive checks from D. Henderson $16,400 and M. Wheeler $7,500 after the discount period has lapsed. Pay freight on merchandise purchased $575. 9 Send checks to M. Mayfield for $19,000 less 2% cash discount, and to B. Hargrove for $22,000 less 1% cash discount. 9 Issue credit of $5,200 to J. Hopper for merchandise returned. 10 Summary daily cash sales total $29,250. 11 Sell merchandise on account to J. Byers $16,600, invoice no. 217, and to D. Henderson $12,900, invoice no. 218. 12 Pay rent of $10,000 for May and June. 13 Receive payment in full from L. Sinclair and J. Hopper less cash discounts. 15 Withdrawal of $9,000 cash by R. Buckley for personal use. Post all entries to the subsidiary ledgers. 16 Purchase merchandise from B. Hargrove $15,090, terms 1/10, n/30; M. Mayfield $14,200, terms 2/10, n/30; and B. Newby $21,500, terms n/30. 17 Pay $1,200 cash for office supplies. 18 Summary daily cash sales total $30,100. 20 Return $1,450 of merchandise to M. Mayfield and receive credit. 21 Issue $23,000 note, maturing in 90 days, to S. Harrington in payment of balance due. 21 Receive payment in full from D. Henderson less cash discount. Sell merchandise on account to L. Sinclair $22, 700, invoice no. 219, and to J. Byers $34,200, invoice no. 220. Post all entries to the subsidiary ledgers. 23 Send checks to B. Hargrove and M. Mayfield in full payment less cash discounts. 25 Sell merchandise on account to M. Wheeler $55,250, invoice no. 221, and to J. Hopper $36, 100, invoice no. 222. 27 Purchase merchandise from B. Hargrove $14,500, terms 1/10, n/30; M. Brenner $12,400, terms n/30; and B. Newby $15,400, terms n/30. Post all entries to the subsidiary ledgers. 28 Pay $500 on account for office supplies. 31 Summary daily cash sales total $28,500. 31 Pay salaries and wages of $9,500. (continued) Page 1 of 2Instructions: (a) Record the May transactions in a Sales Journal, a single-column Purchases Journal, a Cash Receipts Journal, a Cash Payments Journal, and a two-column General Journal. (b) Post the journals to the General Ledger. (c) Prepare a Trial Balance at May 31, 2023, in the trial balance columns of the Worksheet. Complete the Worksheet using the following additional information. 1. Office supplies at May 31 total $700. 2. Insurance coverage expires on May 31, 2023. The insurance was originally purchased on January 1st and has been adjusted every month of this year. 3. Annual depreciation on the equipment is $4, 100. Round to nearest dollar. 4. Interest of $250 has accrued on the note payable. 5. Inventory on hand as of May 31 was actually $10,420. (d) Prepare a multiple-step Income Statement and an Owner's Equity Statement for May and a classified Balance Sheet at the end of May. (e) Prepare and post adjusting and closing entries. (f) Prepare a Post-Closing Trial Balance, and determine whether the subsidiary ledgers agree with the control accounts in the General Ledger. (g) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers: 1. Inventory Turnover 2. Days in Inventory for the month of May 3. Gross Profit Rate 4. Working Capital Page 2 of 2Name Section Date (a) (Continued) and (e) General Journal G1 Date Account Titles Ref Debit Credit 4 of 16