The correct company means the company that paid the freight charge. It is Fob shipping point so Copple hardware pays for it

system. Pre income state balance she ISO 2, 3, 5) P5-4A Copple Hardware Store had the following merchandising transactions in the month of May. Record and At the beginning of May, Copple's ledger showed Cash $15,000 and B. Copple, Capital, $15,000 May 1 Purchased 120 tool sets for resale from Lathrop Wholesale Supply Co. for $5.800, terms 2/10, n/30, FOB shipping point. 3 The correct company paid $200 cash for freight charges on the May I merchandise purchase. 4 Sold 30 of the tool sets on account for $2.250 terms 2/10, 1/30, FOB destination 5 The correct company paid S100 freight on the May 4 sale. 6 Issued a credit memorandum for the return of three tool sets sold on May 4. The tool sets were returned to inventory. 8 Purchased supplies for $900 cash. 9 Purchased merchandise from Harlow Distributors for $2,000, terms 2/10, n/30, FOB shipping point 10 The correct company paid $300 freight on the May 9 purchase. 12 Received $200 credit from Harlow Distributors for returned merchandise. 19 Paid Harlow Distributors for the balance owing. 24 Sold one-half of the remaining merchandise purchased from Harlow for $2,600 cash. The merchandise sold had a cost of $1,032. 25 Purchased merchandise from Horicon Inc. for $1,000, terms n/30, FOB destination 27 Received collections in full from customers billed on May 4. 28 Made cash refunds to customers for returned merchandise, S100. The returned merchan- dise had a cost of $70 and was restored to inventory 28 Purchased merchandise for $2.400 cash. 29 Received a $230 refund from a supplier for poor quality merchandise purchased with cash. 31 Paid Lathrop Wholesale Supply for the balance owing. 31 Sold merchandise on account for $1,600, FOB shipping point, terms n/30. The cost of the merchandise sold was $1,000. Instructions (a) Record the transactions assuming Copple uses a perpetual inventory system. (b) Set up general ledger accounts, enter the beginning cash and capital balances, and post the transactions (c) Prepare a partial multiple-step income statement, up to gross profit, for the month of May 2008 (d) Prepare the current assets section of the balance sheet at May 31, 2008