The question asks you to record the May transactions, and to set up T accounts, enter the opening balances, and post the transactions. The second last screenshot asks to prepare a partial multiple-step income statement for the month ended May 31, through to gross profit. The last screenshot asks to prepare the current assets section of the statement of financial position as at May 31.
Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Store's ledger showed Cash $7,200; Accounts Receivable $1,700; Inventory $3,200; Common Shares $7,800; and Retained Earnings $4,300. Piper Specialty Store uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd. for $5,700, terms 1/10, n/30, FOB shipping point. 3 Freight charges of $150 were paid by the appropriate party on the merchandise purchased on May 1. 4 Sold merchandise on account to Yip Company for $3,200, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,000. 7 Freight charges of $110 were paid by the appropriate party on the May 4 sale. 8 Received a $200 credit from Depot Wholesale Supply when merchandise was returned. 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $400 cash. 14 Received payment in full from Yip Company for merchandise sold on account on May 4. 15 Collected $900 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts. 18 Purchased merchandise from Harlow Distributors Inc. for $2,100, terms n/30, FOB destination. 21 Freight of $60 was paid by the appropriate party on the May 18 purchase of merchandise. 22 Sold merchandise to various customers for $6,100 cash. The cost of the merchandise was $4,200. 29 Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $50. It was restored to inventory. 31 A physical inventory count was taken and determined that there was $4,600 of inventory on hand. Prepare any adjustment required. 9 Accounts Payable 5643 5643 Inventory 200 cash Cash i 110|| 31 Cost of Goods Sold 1100 Inventory - 1100 1100 Cash May 1 Bal. 1 7200 || May 3 May 14 | May 7 May 15 May 9 May 22 May 11 . May 29 May 31 Bal. Accounts Receivable May 1 Bal. May 14 May 4 May 15 May 31 Bal. Inventory May 1 Bal. May 4 May 1 May 8 May 3 May 9 May 18 May 11 D May 29 May 31 0 00 cerita od od cilddi May 31 Bal. 1 Supplies May 1 Bal. May 11 May 31 Bal. Common Shares X X = = Accounts Payable Sales [[[[ [TO FX Sales Returns and Allowances Sales Discounts Freight Out Cost of Goods Sold Retained Earnings Sxl. Piper Specialty Store Ltd. Income Statement (Partial) Month Ended May 31, 2018 Sales revenues TLess x x Net sales Gross profit Piper Specialty Store Ltd. Statement of Financial Position (Partial) May 31, 2018 Assets Current Assets Cash =x Accounts Receivable Tinventory Supplies Total Current Assets Total Current Assets
