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