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Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Cranes ledger showed Cash of $8,300 and
Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Cranes ledger showed Cash of $8,300 and Common Stock of $8,300. May 1 N 5 9 10 11 12 15 Purchased merchandise on account from Black Wholesale Supply for $8,300, terms 1/10,n/30. Sold merchandise on account for $4,700, terms 2/10,n/30. The cost of the merchandise sold was $3,600. Received credit from Black Wholesale Supply for merchandise returned $200. Received collections in full, less discounts, from customers billed on May 2. Paid Black Wholesale Supply in full, less discount. Purchased supplies for cash $900. Purchased merchandise for cash $3,300. Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. Purchased merchandise from Wilhelm Distributors for $2,700, terms 2/10,n/30. Paid freight on May 17 purchase $250. Sold merchandise for cash $5.500. The cost of the merchandise sold was $4.100. Purchased merchandise from Clasps Inc for $800, terms 3/10, 1/30. Paid Wilhelm Distributors in full, less discount. Made refunds to cash customers for returned merchandise $108. The returned merchandise had cost $82. Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $857. 17 19 24 25 27 29 31 Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. (Post entries in the order of journal entries posted in part (a). Round answers to decimal places, eg. 5,275.) Cash 5/1 Bal. 8300 5/10 8019 5/9 4606 5/11 230 5/25 800 5/24 54 5/31 7052 5/31 Bal. 15182 5/31 Bal. 15182 Supplies 5/11 900 5/31 900 5/31 Bal 900 5/31 Bal. 900 Accounts Payable 5/5 200 5/1 8300 5/10 8100 5/17 2700 5/27 3446 5/25 800 5/31 Bal. 11800 5/31 Bal. 11800 Common Stock 5/31 8300 5/31 8300 5/31 Bal. 8300 5/31 Bal. 8300 Sales Revenue 5/2 4700 5/24 5500 5/31 1280 5/31 Bal. 0 5/31 Bal. 11480 Sales Returns and Allowances 5/29 108 5/31 Bal. 108 5/31 Bal. 0 Sales Discounts 5/9 94 5/31 Bal. 94 5/31 Bal. 0 Cost of Goods Sold 5/2 3600 5/29 82 5/31 1280 5/31 Bal. 0 5/31 Bal. 11480 Sales Returns and Allowances 5/29 108 5/31 Bal. 108 5/31 Bal. 0 Sales Discounts 5/9 94 5/31 Bal. 94 5/31 Bal. 0 Cost of Goods Sold 5/2 Inventory 3300 Cash 3300 May 15 > Cash 230 Inventory 230 May 17 Inventory 2700 Accounts Payable 2700 May 19 Inventory 250 Cash 250 May 24 Cash 5500 Sales Revenue 5500 (To record sales) Cost of Goods Sold 4100 Inventory 4100 (To record cost of merchandise sold) May 25 Inventory 800 Accounts Payable 800 May 27 Accounts Payable 2700 Inventory 54 Cash 2646 May 29 Sales Returns and Allowances 108 Cash 108 Cash 250 May 24 V Cash 5500 Sales Revenue 5500 (To record sales) Cost of Goods Sold 4100 Inventory 4100 (To record cost of merchandise sold) May 25 Inventory 800 Accounts Payable 800 May 27 Accounts Payable 2700 Inventory 54 Cash 2646 May 29 Sales Returns and Allowances 108 Cash 108 (To record payment for returned merchandise) Inventory 82 Cost of Goods Sold 82 (To record cost of goods returned) May 31 V Accounts Receivable 1280 Sales Revenue 1280 (To record credit sale) Cost of Goods Sold 857 Inventory 857
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