The Sport Store uses a perpetual inventory system. The following transactions occurred during April 2022: April 2 Purchased merchandise from Rough Co. for $5,600 under credit terms of 1/15, n/30, FOB factory. 3 Paid $285 for shipping charges on the April 2nd purchase. 5 Sold merchandise to Fit Co. for $3,900 under credit terms of 2/10, n/30, FOB shipping point. The cost of the merchandise was $1,400. 6 Received a $800 credit memorandum acknowledging the return of merchandise purchased on April 2 7 Fit Co. requested a price reduction on the April 5 sale because the merchandise did not meet specifications. Sent Fit Co. a credit memorandum for $700 to resolve the issue. 8 Received Fit Co.'s payment of the amount due from the April 5 sale. 13 Paid the balance due to Rough Co. 18 Sold merchandise to Raptor Co. for $9,500. Raptor paid immediately. The merchandise cost $5,550. 20 Paid $389 April telephone bill. Instructions: Record the above transactions in the General Journal data entry form provided in the Learn Assessment Dropbox. Note: Question 2 is on the next page Following is some selected data of Magenta Company from the April 30, 2022 adjusted trial balance shown alphabetically. Magenta Company is a merchandising operation that uses a periodic Inventory system. Note: Refer to page 5-34 referencing the cost of Goods Sold Section of the periodic Income Statement for guidance regarding the format required to answer this question 840 325 8,600 75 The Timberland Store is a retail store and uses a periodic Inventory system. Assume that the sales tax rates are GST @ 5% and PST @8%. The following transactions occurred during June 2022 June 4 Sold merchandise to Healthy Co. for $7.500. FOB shipping point Healthy Co. is the final user of the merchandise Credit terms 2/20.30. The cost of the merchandise was $4,500 Purchmed merchandise from Runner Co. for $8.200 under credt terms of 2/15, 30. FOB destination 12 Received a $750 credit memorandum acknowledging the retum of merchandise purchased on June 6. 13 Received Healthy Co's payment of the amount due from the June 4 sale. 15 Purchased office supplies for $200 before tax for business use. Paid for the purchase immediately 20 Paid the balance due to Rurver Co. Instructions: Record the above transaction in the Gener Journal data entry form provided in the Module Lean Assessment Dropbox 6,000 6.100 Accounts Payable Accounts Receivable Bal Magenta, Capital Interest Revenue Merchandise inventory Operating expenses Purchases Purchases discounts Purchases returns & allowances Swes Store Equipment Store Supplies Transportation in Ba Magenta, Withdrawals 230 420 40.000 5.000 125 900 600 Note: Question 3 is on the next page A physical count on April 30, 2022 revealed a merchandise Inventory balance of $4.800 Required: Calculate Cost of Goods Sold for Magenta Company for April 2022 (show & label all work) Note: Question 4 is on the next page Stormy Supply Store Trial Balance 31-Dec-22 $30,000 27,000 50,800 1,500 800 560 128,000 Cash Accounts receivable Merchandise inventory Office supplies Store supplies Prepaid Insurance Building Accumulated depreciation-Building Accounts payable Salaries payable R. Raptor, capital R. Raptor, drawings Sales Sales Returns and Allowances Sales Discount Cost of goods sold Interest Expense Depreciation expense Salaries expense Internet expense Store Supplies expense $38,900 23,000 2,400 98,000 9,700 880,000 26,700 33,900 552,940 3,200 25,600 144,700 2,100 4.800 1,042,300 1,042,300 Required: Prepare a multi-step income statement. Note. There are marks for formatting such as $,underlines, section labels, 1 mark will be deducted for each account that does not belong on the statement
