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Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May: Date Transaction May 1 Made cash sales

Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May: Date Transaction May 1 Made cash sales of $6,900; the cost of the inventory was $3,200. 5 Purchased $2,700 of inventory on credit. 9 Made credit sales of $3,600; the cost of the inventory sold was $1,900. 13 Paid sales salaries of $800 and office salaries of $500. 14 Paid for the May 5 purchases. 18 Purchased sales equipment costing $6,100; made a down payment of $1,900 and agreed to pay the balance in 60 days. 21 Purchased $800 of inventory for cash. 27 Sold land that had originally cost $1,800 for $2,700.

CHART OF ACCOUNTS
Mead Company
General Ledger
ASSETS
111 Cash
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
180 Land
181 Equipment
189 Accumulated Depreciation
LIABILITIES
211 Accounts Payable
231 Sales Salaries Payable
232 Office Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
EQUITY
311 Common Stock
331 Retained Earnings
REVENUE
411 Sales Revenue
451 Gain on Sale of Land
EXPENSES
500 Cost of Goods Sold
511 Insurance Expense
512 Utilities Expense
521 Sales Salaries Expense
522 Office Salaries Expense
532 Bad Debt Expense
540 Interest Expense
541 Depreciation Expense
559 Miscellaneous Expenses
910 Income Tax Expense

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