Latona Hardware Store completed the following retail operations in May. At the beginning of May, Latona's ledger showed $5,060 in Cash and $5,060 in Common Stock.

1 May		Merchandise purchased for the account of $4,100 from Gray's Wholesale, terms 2/10, n/30.
2		Sold merchandise on $1,800 account, terms 1/10, n/30. The cost of goods sold was $1,370.
5		Credit from Gray's Wholesale for returned goods refunded $300.
9		On May 2, full collections excluding discounts were received from customers billed on $1,800 in sales.
10		Paid the entirety of Gray's Wholesale Supply, with less discount.
11		Consumables purchased for $330 in cash.
12		Bought goods for $1,500 in cash.
15		Refund received from supplier for poor quality goods at $190 cash purchase.
17		Items purchased from Amland Distributors $1,300, FOB shipping point, terms 2/10, n/30.
19		Freight paid on May 17, buy $160.
24		He sold the item for $3,380 in cash. The cost of goods sold was $1,990.
25		Goods purchased from Horvath, Inc. $600, FOB destination, terms 2/10, n/30.
27		Full payment, less discount to Amland Distributors.
29		Cash customers were refunded $70 for defective goods. The fair value of the returned item was $40.
31		Goods sold on account $1,120, maturity number n/30. The cost of goods sold was $510.

Latona Hardware's chart of accounts includes: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Stock, No. 126 Consumables, No. 201 Account Payable, No. 412 Sales Returns and Provisions, Sales Discounts No. 414, and Cost of Goods Sold No. 505.

Required

Log transactions using a perpetual inventory system.

Enter initial cash and common stock balances and record transactions. (Submit the entries in the order of the log entries presented in the previous question.)

Prepare an income statement by gross profit for the month of May 2015.