It is Monday, May 1, the first business day of the month, and you have just been hired as the accountant for Alpine Company, which operates with monthly accounting periods. All of the company's accounting work has been completed through the end of April and its ledger shows April 30 balances detailed in the April 30 post-closing trial balance immediately below. These represent the opening balances for the month of May. Alpine Company Post Closing Trial Balance April 30 Account Cash Accounts Receivable Merchandise Inventory Office Supplies $'s Dr Cr 50,247 4,730 220,080 430 Store Supplies 2,447 Prepaid Insurance 3,318 Office Equipment 22,470 I Accumulated Depreciation, Office Equipment 9,898 Store Equipment 38,920 Accumulated Depreciation, Store Equipment 17,556 Accounts Payable 7,100 Clint Barry, Capital 308,088 Total 342,642 342,642 Alpine Company uses a perpetual inventory system. The terms of all credit sales are 2/10, n/30. During your first month on the job, the following transactions occur for Alpine Company. May 1 Issued cheque to S&M Management Co. in payment of the May rent, $3,700. Use two Rent Expense accounts to record the transaction. Charge 80% of the rent to Rent 22 Sold merchandise on credit to Essex Company for $6,050. Cost $3,640. Issued a $130 credit memorandum to Nabors, Inc., for defective merchandise sold on April 28 and discarded when returned by Nabors, Inc. (cost $105) for credit. The total selling price was $4,730. 1/5/2023 3 4 BACC 152 In-class COMPREHENSIVE PROBLEM 5% of Course Grade! Currie Sections Received a $350 credit memorandum from Parkay Products for merchandise - received on April 29 and returned for credit. Purchased on credit from Thompson Supply Co.: merchandise, $37,100; store supplies, $580; and office supplies, $85. Invoice dated May 4, terms n/10 EOM. 5 Received payment from Nabors, Inc. from the sale of April 28. 8 9 10 11 11 Issued cheque to Parkay Products to pay for the $7,100 of merchandise received on April 29. The terms of this purchase are 2/10, n/30. Sold store supplies to the merchant next door at cost for cash, $325. Purchased office equipment on credit from Thompson Supply Co., invoice dated May 10, terms n/10 EOM, $4,200. Received payment from Essex Company for the May 2 sale. Received merchandise and an invoice dated May 10, terms 2/10, n/30, from Gale, Inc., $9,100. 12 Received an $850 Credit memorandum from Thompson Supply Co. for defective office equipment received on May 10 and returned for credit. 15 Issued cheques in payment of sales salaries, $5,500, and office salaries, $3,600. 15 Cash sales for the first half of the month, $61,000. Cost $36,600. Such sales are normally recorded daily. They are recorded only twice in this problem to reduce the repetitive entries. 16 Sold merchandise on credit to Essex Company for $3,700. Cost $2,220. 17 Received merchandise and an invoice dated May 14, terms 2/10, n/60, from Chandler Corp., $14,700. 19 Issued cheque to Gale, Inc. in payment of its May 10 invoice. 22 Sold merchandise to Oscar Services for $7,100. Cost $4,260. 23 Issued cheque Chandler Corp. in payment of its May 14 invoice. 24 Purchased on credit from Thompson Supply Co.: merchandise, $9,200; store supplies, $630; and office supplies, $280. Invoice dated May 24, terms n/10 EOM. 25 25 Received merchandise and an invoice dated May 23, terms 2/10, n/30, from Parkay Products, $3,100. Sold merchandise on credit to Deaver Corp for $12,500. Cost $7,500. 26 26 Issued cheque to Trinity Power in payment of the April electric bill, $1,350. 29 30 The owner, Clint Barry, withdrew $7,000 from the business for personal use. Received payment from Oscar Services for the May 22 sale. 30 31 Issued cheques in payment of sales salaries, $5,500, and office salaries, $3,600 for the second half of the month. Cash sales for the last half of the month were $61,000. Cost $36,600 BACC 152 In-class COMPREHENSIVE PROBLEM 5% of Course Grade! Currie Sections Additional Information: a) Expired insurance, $553. b) Ending store supplies inventory, $2,632. c) Ending office supplies inventory, $504. d) Estimated depreciation of store equipment, $567. e) Estimated depreciation of office equipment, $329. f) Ending merchandise inventory, $191,000