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PROBLEMS: SET A Journalize, post, and prepare P5-1A Winters Hardware Store completed the following merchan partial income statement, and calculate ratios. month of May. At the beginning of May, Winters'l Common Stock of $8,000. dising transactions in edger showed Cash of $8,000 and LO 2,3,4,6),AP 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 men- chandise 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 GLS cash purchase. 17 Purchased merchandise from Wilhelm Distributors for $2,500, terms 2/10, n/30. 24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100. 29 Made refunds to cash customers for returned merchandise $124. The returned 31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchan- Winters Hardware's chart of accounts includes Cash, Accounts Receivable,Inventory, Supplies 19 Paid freight on May 17 purchase $250 Purchased merchandise from Clasps Inc. for $800, terms 3/10, n/30. 25 27 Paid Wilhelm Distributors in full, less discount. merchandise had cost $90. dise sold was $830. Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold. Instructions Journalize the transactions using a perpetual inventory system. stock balances. (b) Post the transactions to T-accounts. Be sure to enter the beginning cash and common $2.828 (e) Prepare an income statement through gross profit for the month of May 2017. (c) Gross profit (d) Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,400.)

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