Problem 5-01A

Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Cranes ledger showed Cash of $8,300 and Common Stock of $8,300.

Problem 5-01A Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Cranes' ledger showed Cash of $8,300 and Common Stock of $8,300. May 1 Purchased merchandise on account from Black Wholesale Supply for $8,300, terms 1/10, n/30. 2 Sold merchandise on account for $4,700, terms 2/10, 1/30. The cost of the merchandise sold was $3,600. 5 Received credit from Black Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. se suppe " 12 Purchased merchandise for cash $3,300. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2,700, terms 2/10, n/30. 19 Paid freight on May 17 purchase $250. Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. 25 Purchased merchandise from Clasps Inc. for $800, terms 3/10, n/30. 27 Paid Wilhelm Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $108. The returned merchandise had cost $82. 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $857. 24 Your answer is partially correct. Try again. Journalize the transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit May Inventory 8300 May 5 | Accounts Payable 200 Inventory 2001 T May 9 Cash 4606 Sales Discounts 94 Accounts Receivable 4700 May 10 Accounts Payable 8100 Purchase Discounts 81 Cash 8019 I May 11 Supplies 900 Cash 900 May 12 Inventory 3300 Cash 3300 May 15 | Cash 230 Your answer is partially correct. Try again. Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. (Post entries in the order of journal entries posted in part (a). Round answers to o decimal places, e.g. 5,275.) Cash 5/1 Bal. 8300||| 5/10 8019 5/9 4606|| 5/11 900 5/15 230|| 5/12 3300 5/24 5500||| 5/19 250 5/27 2646 5/29 108 T 5/31 Bal. 18636 || 5/31 Bal. 18636 Accounts Receivable 5/2 4700||| 5/9 4700 x x 5/24 5500 5/29 108 x 5/31 1280 Inventory X 5/1 5/2 X 5/12 | 5/5 x 5/17 5/11 5/19 5/15 x 5/25 5/24 o ddtocolo 5/29 A 5/27 T 5/31 X x Supplies > 5/12 Accounts Payable Accounts Payable 5/5 5/1 5/11 5/17 X 5/27 5/25 Common Stock 5/31 Bal. Odld it fill Sales Revenue 5/2 5/24 5/31 X Sales Returns and Allowances x 5/29 X x Sales Discounts X 5/9 X X x X Cost of Goods Sold x x 5/2 5/29 5/24 X 5/31 X X X X Prepare an income statement through gross profit for the month of May 2022. (Round answers to 0 decimal places, e.g. 5,275.) CRANE HARDWARE STORE Income Statement (Partial) For the Month Ended May 31, 2022 A Sales X Sales Revenue Less Cost of Goods Sold X Freight-In X Net Sales malt X Cost of Goods Sold X Gross Profit x Your answer is incorrect. Try again. Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,469.) (Round answers to 1 decimal place, e.g. 15.5%.) X Profit margin 1% Gross profit rate 1% Click if you would like to Show Work for this question: Open Show Work