Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $4,600and Owners Capital of $4,600.

May 1	Purchased merchandise on account from Braun's Wholesale Supply $4,100, terms1/10, n/30.
2	Sold merchandise on account $2,100, terms2/10, n/30. The cost of the merchandise sold was $1,320.
5	Received credit from Braun's Wholesale Supply for merchandise returned $300.
9	Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2.
10	Paid Braun's Wholesale Supply in full, less discount.
11	Purchased supplies for cash $370.
12	Purchased merchandise for cash $1,200.
15	Received refund for poor quality merchandise from supplier on cash purchase $110.
17	Purchased merchandise from Valley Distributors $1,100, FOB shipping point, terms2/10, n/30.
19	Paid freight on May 17 purchase $140.
24	Sold merchandise for cash $3,430. The merchandise sold had a cost of $2,060.
25	Purchased merchandise from Lumley, Inc. $550, FOB destination, terms 2/10, n/30.
27	Paid Valley Distributors in full, less discount.
29	Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30.
31	Sold merchandise on account $1,210, terms n/30. The cost of the merchandise sold was $570.

(1)Journalize the transactions using a perpetual inventory system

(2)Enter the beginning cash and capital balances and post the transactions.

(3)Prepare an income statement through gross profit for the month of May 2017.