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At the beginning of June 2017, Pina Colada Distributing Companys ledger showed Cash $18,000, Merchandise Inventory $6,000, and D. Pina Colada, Capital, $24,000. During the

At the beginning of June 2017, Pina Colada Distributing Companys ledger showed Cash $18,000, Merchandise Inventory $6,000, and D. Pina Colada, Capital, $24,000. During the month of June, the company had the following selected transactions: June 1 Purchased $8,910 of merchandise inventory from Sun Supply Co., terms 1/15, n/30, FOB destination. 2 The correct company paid $220 cash for freight charges on the June 1 purchase. 5 Sold merchandise inventory to Moose Jaw Retailers for $12,200. The cost of the merchandise was $7,700 and the terms were 2/10, n/30, FOB destination. 6 Issued a $820 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $540 and was returned to inventory. 6 The correct company paid $280 freight on the June 5 sale. 7 Purchased $840 of supplies for cash. 10 Purchased $4,550 of merchandise inventory from Fey Wholesalers, terms 2/10, n/30, FOB shipping point. 10 The correct company paid $150 freight costs on the purchase from Fey Wholesalers. 12 Received a $300 credit from Fey Wholesalers for returned merchandise. 14 Paid Sun Supply Co. the amount due. 15 Collected the balance owing from Moose Jaw Retailers. 19 Sold merchandise for $7,100 cash. The cost of this merchandise was $4,500. 20 Paid Fey Wholesalers the balance owing from the June 10 purchase. 25 Made a $520 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $325. The merchandise was damaged and could not be resold. 30 Sold merchandise to Bauer & Company for $4,200, terms n/30, FOB shipping point. Pina Colada's cost for this merchandise was $2,600. A physical inventory count shows $3,900 of inventory on hand on June 30, 2017.

1)Record the transactions assuming Pina Colada uses a periodic inventory system

2) Set up general ledger accounts for merchandise inventory and all of the temporary accounts used in the merchandising transactions. Enter beginning balances, and post the transactions.

Merchandise Inventory

Date

Explanation

Ref.

Debit

Credit

Balance

June 1

Balance

Sales

Date

Explanation

Ref.

Debit

Credit

Balance

June 5

J1

19

J1

30

J1

Sales Returns and Allowances

Date

Explanation

Ref.

Debit

Credit

Balance

June 6

J1

25

J1

Sales Discounts

Date

Explanation

Ref.

Debit

Credit

Balance

June 15

J1

Purchases

Date

Explanation

Ref.

Debit

Credit

Balance

June 1

J1

10

J1

Purchases Discounts

Date

Explanation

Ref.

Debit

Credit

Balance

June 14

J1

June 20

J1

Purchases Returns and Allowances

Date

Explanation

Ref.

Debit

Credit

Balance

June 12

J1

Freight In

Date

Explanation

Ref.

Debit

Credit

Balance

June 10

J1

Freight Out

Date

Explanation

Ref.

Debit

Credit

Balance

June 6

J1

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