Problem 1 (40 marks): Haley Store completed the following merchandising transactions in the month of May, 2021. At the beginning of May, 2021, the ledger of showed Cash of $5,000 and Share Capital - Ordinary of $5,000. May 1 Purchased merchandise on account from Bookem Wholesale Supply $3,200, terms 2/10, 1/30. FOB destination. The appropriate party also made a cash payment of $50 for the freight on this date. 2 Sold merchandise on account to Blanco for $4,000, terms 2/10, n/30; FOB destination. The cost of the merchandise sold was $1,500. The appropriate party also made a cash payment of S50 for the freight on this date. 5 Received credit from Bookem's Wholesale Supply for merchandise returned $500 7 Granted Blanco S200 credit for merchandise returned costing $75. 9 Paid Bookem's Wholesale Supply in full, less discount if any. 11 Received collections in full from Blanco, less discounts if any. 13 Purchased merchandise from Sherrick Distributors $1,300, FOB shipping point, terms 2/10,n/30. The appropriate party also made a cash payment of $50 for the freight on this date. 20 Paid $250 cash for utilities bill of May. 24 Paid Sherrick Distributors in full, less discount if any. 25 Paid employees' salaries and wages $1,000 cash Instructions: 1. Journalize the transactions for the month of May for Haley Store using a perpetual inventory system 2. Prepare the Income statement for the month of May, 2021, Ansir