Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Store's ledger showed Cash $7,500; Accounts Receivable $1,300 Inventory $3,600; Common Shares $8,600; and Retained Earnings $3,800. Piper Specialty Store uses a perpetual inventory system. May 1 3 4 7 8 9 11 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,200, terms 1/10, n/30, FOB shipping point. Freight charges of $130 were paid by the appropriate party on the merchandise purchased on May 1. Sold merchandise on account to Yip Company for $3,600, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,000. Freight charges of $100 were paid by the appropriate party on the May 4 sale. Received a $200 credit from Depot Wholesale Supply when merchandise was returned. Paid Depot Wholesale Supply in full. Purchased supplies for $300 cash. Received payment in full from Yip Company for merchandise sold on account on May 4. Collected $900 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts. Purchased merchandise from Harlow Distributors Inc. for $2,100, terms n/30, FOB destination. Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise. Sold merchandise to various customers for $6,900 cash. The cost of the merchandise was $4,300. Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $60. It was restored to inventory. A physical inventory count was taken and determined that there was $4,300 of inventory on hand. Prepare any adjustment required. 14 15 18 21 22 29 31 Prepare a partial multiple-step income statement for the month ended May 31, through to gross profit. Piper Specialty Store Ltd. Income Statement (Partial) Month Ended May 31, 2018 V Sales revenues Sales Less V Sales Discounts Sales Returns and Allowances Net sales todo Cost of Goods Sold Gross profit Prepare the current assets section of the statement of financial position as at May 31. (List Current assets in order of liquidity.) Piper Specialty Store Ltd. Statement of Financial Position (Partial) May 31, 2018 Assets Current Assets Cash Accounts Receivable Inventory Doddi Supplies Total Current Assets