(a)Journalize the transactions using a perpetual inventory system.
(b)Enter the beginning cash and common stock balances and post the transactions. (Use J1 for the journal reference.)
(c)Prepare an income statement through gross profit for the month of May 2019.
(c) Gross profit $2,379
PS2A Latona Hlardware Store completed the following merchandising transacticns in the month of May. At the beginning ef May, the ledger of Latona showed Cash of $5000 and Common Stock of $5.000. May Purchased merchandise on account from Gray's Wholesale Supply $4,200, terms 2/10, n/30 2 Sold merchandise on account $2,00, terms 1/0, n/30. The cost of the merchandise sold was $1.300. 5 Received credit frem Gray's Wholesale Supply for merchandise returned $300. 9 Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2 so Paid Gray's Wholesale Supply in full, less diseount Purchased supplies for cash $400. 12 Purchased merchandise for cash $1.40o 5 Received refund for poor quality merchandise from supplier on cash purchase $150. 7 Purchased merchandise from Amland Distributors $1.300, FOB shipping point, terms 2/10, n/30 Paid freight on May 17 parchase S130. 24 Sold merchandine for cash $3200. The merchandine nold had a coet of $2,000 as Purchased merchandise on aceoust froem Horvath, Inc. 5620, FOB destination, terms 2/10, n/30 7 Paid Amland Distributors in fall, less discount. 29 Made refunds to cash eustomers for defective merchandise $70. The returned merchandise had a fair value of $30. 3s Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $36e Latona Hardware's chart of accousts includes the following No. 101 Cash, No. 112 Aecounts Receivable, No. 1o Inventory, No. 1a6 Supplies, Na a01 Accounts Payable, No. 31 Common Stock, No. 401 Sales Revenue, No 412 Sales Returns and Allowances, No. 414 Seles Discounts, and No. sos Cost of Goods Sold. instructions (a) Journaline the transactions using a perpetual inventory system. (b) Enter the beginaing cash and common stock balances and post the transactions. (Use Ji for the journal reference.) (e) Prepare an income statement through groas profit for the moath of May 2019 (e) Gross profit $2.379 P5-2A Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Latona showed Cash of $5,000 and Common Stock of $5,000. May Purchased merchandise on account from Gray's 1 Wholesale Supply $4,200, terms 2/10, n/30. 2 Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300. 5 Received credit from Gray's Wholesale Supply for merchandise returned $300. 9 Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2. 10 Paid Gray's Wholesale Supply in full, less discount. 11 Purchased supplies for cash $400. 12 Purchased merchandise for cash $1,40o. 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Amland Distributors $1,300, 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 on account from Horvath, Inc $620, FOB destination, terms 2/10, n/30 27 Paid Amland Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30 31 Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $560. Latona 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. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold
