Cochrane Hardware Store completed the following merchandising transactions in its first month of December. Dec. 1,...

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Cochrane Hardware Store completed the following merchandising transactions in its first month of December. Dec. 1, opened a bank account and invested $30,000 as capital Dec. 1, paid rent for the month $2,000. Dec. 2, purchased office equipment for $25,000, paid $10,000 cash, and signed a 3-month, 12%, $15,000 note payable. Dec. 3, purchased merchandise on account from Braun's Wholesale Co. $4,200, terms 2/10, n/30. Dec. 5, returned defective inventory of $200 to Braun's Wholesale Co Dec. 6, sold merchandise on account $2,000, terms 3/10, n/30. The cost of the merchandise sold was $1,300. Dec 11, received collections in full, less discounts, from customers billed on sales on Dec. 6. Dec 12, paid Braun's Wholesale Co. in full, less discount. Dec. 15, purchased supplies for cash $400. Dec. 20, purchased merchandise from Valley Distributors $1,300, FOB shipping point, terms 2/10, n/30. Dec. 21, paid freight for the purchase $130. Dec. 25, sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. Dec. 26, made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. Dec. 29, the owner withdrew $500 cash for personal use. At the end of the month, following adjustments were made. Accrued salaries and wages of $2,750. Supplies of $100 are on hand. Depreciation on the equipment is $400 per month. Interest of $150 has accumulated on a note payable. Instructions (a) Journalize the transactions and adjustments. (b) Post to the ledger. (30 marks) (30 marks) (c) Prepare an income statement and owner's equity statement for the month December and a balance sheet at Dec. 31. (30 marks) (d) Prepare required closing entries and post to the ledger. (10 marks) (You may omit preparation of trial balance.) Cochrane Hardware Store completed the following merchandising transactions in its first month of December. Dec. 1, opened a bank account and invested $30,000 as capital Dec. 1, paid rent for the month $2,000. Dec. 2, purchased office equipment for $25,000, paid $10,000 cash, and signed a 3-month, 12%, $15,000 note payable. Dec. 3, purchased merchandise on account from Braun's Wholesale Co. $4,200, terms 2/10, n/30. Dec. 5, returned defective inventory of $200 to Braun's Wholesale Co Dec. 6, sold merchandise on account $2,000, terms 3/10, n/30. The cost of the merchandise sold was $1,300. Dec 11, received collections in full, less discounts, from customers billed on sales on Dec. 6. Dec 12, paid Braun's Wholesale Co. in full, less discount. Dec. 15, purchased supplies for cash $400. Dec. 20, purchased merchandise from Valley Distributors $1,300, FOB shipping point, terms 2/10, n/30. Dec. 21, paid freight for the purchase $130. Dec. 25, sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. Dec. 26, made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. Dec. 29, the owner withdrew $500 cash for personal use. At the end of the month, following adjustments were made. Accrued salaries and wages of $2,750. Supplies of $100 are on hand. Depreciation on the equipment is $400 per month. Interest of $150 has accumulated on a note payable. Instructions (a) Journalize the transactions and adjustments. (b) Post to the ledger. (30 marks) (30 marks) (c) Prepare an income statement and owner's equity statement for the month December and a balance sheet at Dec. 31. (30 marks) (d) Prepare required closing entries and post to the ledger. (10 marks) (You may omit preparation of trial balance.)