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PROBLEMS: SET A nalize, post, and prepare ial income statement, and the month of May. At the beginning of May, Winters' ledger sh ulate ratios

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PROBLEMS: SET A nalize, post, and prepare ial income statement, and the month of May. At the beginning of May, Winters' ledger sh ulate ratios 2, 3, 4, 6),AP P5-1A Winters Hardware Store completed the following merchandi of 8,000 and Common Stock of $8,000. terms 1/10, n/30, nse on account from Black Wholesale Supply for $8,000, Sold merchandise on account for $4,400, terms 2/10, n/30. The cost of the mer- chandise sold was $3,300. May rc 2 Received credit from Black Wholesale Supply for merchandise retu rned $200. 5 9 Received collections in full, less discounts, from customers billed on May 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $3,100. 15 Received $230 refund for return of poor quality merchandise from supplier on cash purchase. 2/10, n/30. 17 Purchased merchandise from Wilhelm Distributors for $2,500, terms 19 Paid freight on May 17 purchase $250. 24 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 $124The returned merchandise had cost $90. Sold merchandise on account for $1,280, terms n/30. The cost of the merchan dise sold was $830. 31 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. (b) Post the transactions to Taccounts. Be sure to enter the beginning cash and common stock balances. oss profit $2,828 (c) Prepare an income statement through gross profit for t (d) Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,400.)

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