[Solved] Winters Hardware Store completed the foll

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Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters ledger showed Cash of $ 8,000

Winters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Winters ledger showed Cash of $ 8,000 and Common Stock of $ 8,000.

May 1		Purchased merchandise on account from Black Wholesale Supply for $ 8,000, terms 1/10, n/30.
2		Sold merchandise on account for $ 4,400, terms 2/10, n/30. The cost of the merchandise sold was $ 3,300.
5		Received credit from Black Wholesale Supply for merchandise returned $ 200.
9		Received collections in full, less discounts, from customers billed on May 2.
10		Paid Black Wholesale Supply in full, less discount.
11		Purchased supplies for cash $ 900.
12		Purchased merchandise for cash $ 3,100.
15		Received $ 230 refund for return of poor-quality merchandise from supplier on cash purchase.
17		Purchased merchandise from Wilhelm Distributors for $ 2,500, terms 2/10, n/30.
19		Paid freight on May 17 purchase $ 250.
24		Sold merchandise for cash $ 5,500. The cost of the merchandise sold was $ 4,100.
25		Purchased merchandise from Clasps Inc. for $ 800, terms 3/10, n/30.
27		Paid Wilhelm Distributors in full, less discount.
29		Made refunds to cash customers for returned merchandise $ 124. The returned merchandise had cost $ 90.
31		Sold merchandise on account for $ 1,280, terms n/30. The cost of the merchandise sold was $ 830.

Journalize the transactions using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

	(To record credit sale)


	(To record cost of merchandise sold)
May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 9


May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31


May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

	(To record sales)


	(To record cost of merchandise sold)
May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31


May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

	(To record payment for returned merchandise)


	(To record cost of goods returned)
May 1May 2May 5May 9May 10May 11May 12May 15May 17May 19May 24May 25May 27May 29May 31

	(To record credit sale)


	(To record cost of goods sold on account)

eTextbook and Media

List of Accounts

Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. (Post entries in the order of journal entries posted in part (a). Round answers to 0 decimal places, e.g. 5,275.)

eTextbook and Media

List of Accounts

Prepare an income statement through gross profit for the month of May 2017. (Round answers to 0 decimal places, e.g. 5,275.)

WINTERS HARDWARE STORE Income Statement (Partial) May 31, 2017For the Year Ended May 31, 2017For the Month Ended May 31, 2017
DividendsExpensesNet Income / (Loss)Retained Earnings, May 1Retained Earnings, May 31SalesTotal ExpensesTotal RevenuesNet SalesGross Profit
		$
AddLess:
	$


DividendsExpensesNet Income / (Loss)Retained Earnings, May 1Retained Earnings, May 31SalesTotal ExpensesTotal RevenuesNet SalesGross Profit

DividendsExpensesNet Income / (Loss)Retained Earnings, May 1Retained Earnings, May 31SalesTotal ExpensesTotal RevenuesNet SalesGross Profit		$

eTextbook and Media

List of Accounts

Calculate the profit margin and the gross profit rate. (Assume operating expenses were $ 1,400.) (Round answers to 1 decimal place, e.g. 15.5%.)

Profit margin			%
Gross profit rate			%

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Inventory
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Supplies
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Common Stock
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Sales Revenue
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Sales Discounts
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Cost of Goods Sold
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