Problems Journalize, post, and prepare partial income statement, and calculate ratio P5.1 (LO 2, 3, 1.9), AP Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters' ledger showed Cash of $8,000 and Common Stock of $8,000. May Purchased merchandise on account from Black Wholesale Supply for 3,000, terms 1/10, n/30. 2 Sold merchandise on account for $4,400, terma 2/10, n/30. The est of the merchandise sold was $3,300. 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. 12 Purchased merchandise for cash $3,100. 11 Purchased supplies for cash $900. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise on account from Wilhelm Distributors for $2,500, terms 2/10, n/30 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $1,100. 25 Purchased merchandise on account 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 merchandoe $92. The returned merchandise had cost 870 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $762. Winters Hardware's chart of accounts includes Cash, Accounts Receivable, Inventory, Supplies, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold Instructions a. Journalize the transactions using a perpetual inventory system. h. Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances c. Prepare an income statement through gross profit for the month of May 2025. d. Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,408) Gross profit $2,908 More Options