During May, the last month of the fiscal year, the following transactions were completed: 1. Paid rent for May, $5,000. 3. Purchased merchandise on account
During May, the last month of the fiscal year, the following transactions were completed:
1. Paid rent for May, $5,000.
3. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping
point, $36,000.
4. Paid freight on purchase of May 3, $600.
6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point,
$68,500. The cost of the goods sold was $41,000.
7. Received $22,300 cash from Halstad Co. on account.
10. Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000.
13. Paid for merchandise purchased on May 3.
15. Paid advertising expense for last half of May, $11,000.
16. Received cash from sale of May 6.
19. Purchased merchandise for cash, $18,700.
19. Paid $33,450 to Buttons Co. on account.
20. Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of
May 6. The invoice amount of the returned merchandise was $13,500 and the
cost of the returned merchandise was $8,000.
20. Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping
point, $110,000. The cost of the goods sold was $70,000.
21. For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
21. Received $42,900 cash from Gee Co. on account.
21. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB
destination, $88,000.
24. Returned damaged merchandise purchased on May 21, receiving a credit memo
from the seller for $5,000.
26. Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned
was $4,800.
28. Paid sales salaries of $56,000 and office salaries of $29,000.
29. Purchased store supplies for cash, $2,400.
30. Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point,
$78,750. The cost of the goods sold was $47,000.
30. Received cash from sale of May 20 plus freight paid on May 21.
31. Paid for purchase of May 21, less return of May 24.
Complete the following:
a. Inventory on May 31 = $570,000
b. Insurance expired during the year = $12,000
c. Store supplies on hand on May 31 = $4,000
d. Depreciation for the current year = $14,000
e. Accrued salaries on May 31:
Sales salaries $7,000
Office salaries 6,600
13,600
f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of goods sold.
5. Prepare an adjusted trial balance.
6. Prepare an Income Statement, Statement of Stockholders Equity, and Balance
Sheet.
7. Prepare and post the closing journal entries.
8. Prepare a post-closing trial balance.
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