ransactions:

May $1$ Paid rent for May, $$5,000.$

May $2$ Sold merchandise on account to Korman Co$.,$ terms n$/15,$ FOB shipping point, $$68,500.$ The cost of

the goods sold was $$41,000.$

May $3$ Purchased merchandise on account from Martin Co$.,$ terms $2/10,$ n$/30,$ FOB shipping point, $$36,000.$

May $4$ Paid freight on purchase of May $3,$ $$600.$

May $10$ Sold merchandise with a list price of $$61,500$ to customers who used VISA and who redeemed

$$7,500$ of point$-$of$-$sale coupons. The cost of the goods sold was $32,000.$

May $13$ Paid for merchandise purchased on May $3.$

May $15$ Paid advertising expense for last half of May, $$11,000.$

May $17$ Received cash from sale of May $2.$

May $20$ Paid Korman Co$.$ a cash refund of $$13,230$ for returned merchandise from sale of May $2.$ The cost

of the returned merchandise was $$8,000.$

May $21$ Sold merchandise on account to Crescent Co$.,$ terms n$/$eom$,$ FOB shipping point, $$110,000.$ The

cost of the goods sold was $$70,000.$

May $21$ For the convenience of Crescent Co$.,$ paid freight on sale of May $21,$ $$2,300.$

May $21$ Purchased merchandise on account from Osterman Co$.,$ terms $1/10,$ n$/30,$ FOB destination, $$88,000.$

May $24$ Returned damaged merchandise purchased on May $21,$ receiving a credit memo from the seller for $$5,000.$

May $28$ Paid sales salaries of $$56,000$ and office salaries of $$29,000.$

May $29$ Purchased store supplies for cash, $$2,400.$

May $31$ Received cash from sale of May $21$ plus freight.

May $31$ Paid for purchase of May $21,$ less return of May $24.$

Required:

$1.$ Journalize the transactions for May, the last month of the fiscal year.

$2.$ Post the journal entries to the general ledger.

$3.$ Enter the unadjusted trial balance on a $10-$column end$-$of$-$period spreadsheet $($work sheet$),$ and complete the spreadsheet using

the following adjustment data

At the end of May, the following adjustment data were assembled:

Item Description Amount

a Physcial inventory count on May $31$ $ $295,000$

b Insurance expired during the year $12,000$

c Store supplies on hand on May $314,000$

d Depreciation for the current year $14,000$

e Accrued salaries on May $31$:

Sales salaries $ $7,000$

Office salaries $6,600$

Total $13,600$

f The adjustment for customer returns and allowances is $$60,000$ for sales and $$35,000$ for cost of goods sold.

$4.$ Journalize the adjusting entries. Post the adjusting entries to the general Ledger

$5.$ Prepare a multiple$-$step income statement.

$6.$ Prepare a statement of stockholders$$ equity. Assume that additional common stock of $$10,000$ was issued in January $20$Y$6.$

$7.$ Prepare a balance sheet.

$8.$ Journalize the closing entries. Then post the closing entries to the general ledger $.$

$9.$ Prepare a post$-$closing trial balance.