Prepare an income statement through gross profit for the month of May 2020. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) CRANE HARDWARE STORE Income Statement (Partial) Sales 6,000 Sales Revenue Less: $ 16 Sales Discounts 70 Sales Returns and Allowances 5,914 Total Revenues $ Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Crane showed Cash of $5,500 and Owner's Capital of $5,500. May 1 Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2/10,n/30. 2 Sold merchandise on account $1,600 terms 1/10,n/30. The cost of the merchandise sold was $1,200. 5 Received credit from Braun's Wholesale Supply for merchandise returned $400. 9 Received collections in full, less discounts, from customers billed on sales of $1,600 on May 2. 10 Paid Braun's Wholesale Supply in full, less discount 11 Purchased supplies for cash $350. 12 Purchased merchandise for cash $1,500. 15 Received refund for poor quality merchandise from supplier on cash purchase $150. 17 Purchased merchandise from Valley Distributors $1400, FOB shipping point, terms 2/10,n/30. 19 Paid freight on May 17 purchase $170. 24 Sold merchandise for cash $2.900. The merchandise sold had a cost of $1,800. 25 Purchased merchandise on account from Lumley, Inc. $600, FOB destination, terms 2/10,n/30 27 Paid Valley Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. 31 Sold merchandise on account $1,500, terms /30. The cost of the merchandise sold was $500. Crane Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No.412 Sales Returns and Allowances, No. 414 Sales Discounts and No.505 Cost of Goods Sold. Enter the beginning cash and capital balances and post the transactions. (Post entries in the order of journal entries presented in the previous part.) No. 101 Cash Date Balance: Credit Debit Explanation Ref. 5,500 Balance May 1 7,084 J1 1,584 May 9 3,724 3,360 May 10 01 01 350 3,010 May 11 1.500 1.510 J1 May 12 1,660 31 150 May 15 170 1.490 J1 May 19 4,390 31 2.900 May 24 1.372 3.018 May 27 J1 J1 70 May 29 2.948 No. 112 Debit Credit Balance Accounts Receivable Date Explanation Ref. May 2 31 1,600 1,600 May 1,600 31 1,500 1.500 No. 120 May 31 Inventory Date May1 Debit Credit Balance Explanation Ref. 31 4.200 4.200 TNO. 120 Date Explanation Debit Credit Balance Ref. 31 May 1 4.200 4,200 May 2 V J1 1,200 3,000 May 5 J1 400 2,600 May 10 J1 76 2,524 May 12 J1 1,500 4,024 May 15 31 150 3,874 May 17 J1 1,400 5,274 May 19 31 170 5,444 May 24 31 1,800 3,644 May 25 v 31 600 4,244 May 27 J1 28 4.216 May 29 J1 30 4.246 May 31 J1 500 3,746 Supplies Date No. 126 Explanation Ref. Debit Credit Balance May 11 J1 350 350 No. 201 Accounts Payable Date Explanation Ref. May 1 31 Debit Credit Balance 4.200 4.200 May 5 31 400 3.800 May 10 J1 3,800 May 17 J1 1,400 1,400 May 25 31 600 2,000 May 27 31 1,400 600 No. 301 Debit Credit Balance Owner's Capital Date Explanation Ref. May 1 Balance Sales Revenue Date Explanation Ref. 5,500 No. 401 Debit Credit Balance May 2 31 1,600 1,600 May 24 J1 2.900 4,500 May 31 31 1,500 6,000 No. Debit Credit Balance Sales Returns and Allowances Date Explanation Ref. May 29 J1 Sales Discounts Date Explanation Ref. May J1 70 70 No. 414 Debit Credit Balance 16 16 Cost of Goods Sold Date Explanation Ref. No. 505 Debit Credit Balance May 2 J1 1,200 1.200 May 24 J1 1,800 3.000 May 29 31 30 2,970 No. 505 Cost of Goods Sold Date Explanation Ref. May 2 31 Debit Credit Balance 1.200 1.200 May 24 J1 1,800 3.000 May 29 31 30 2.970 May 31 J1 500 3.470
