Details of this Paper

Stein Hardware Store completed these merchandising...

Description

Solution


Question

Stein Hardware Store completed these merchandising transactions in the month of May. At the beginning of May, Stein's ledger showed Cash of $8,000 and Common Stock of $8,000. May 1 Purchased merchandise on account from Hilton Wholesale Supply $8,000, terms 2/10, n/30. 2 Sold merchandise on account $4,400, terms 3/10, n/30. The cost of the merchandise sold was $3,300. 5 Received credit from Hilton Wholesale Supply for merchandise returned $200. 9 Received collections in full, less discounts, from customers billed on on May 2. 10 Paid Hilton Wholesale Supply in full, less discount. 11 Purchased supplies for cash $900. 12 Purchased merchandise for cash $2,700. 15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase. 17 Purchased merchandise from Northern Distributors $2,500, terms 2/10, n/30. 19 Paid freight on May 17 purchase $250. 24 Sold merchandise for cash $5,400. The cost of the merchandise sold was $4,020. 25 Purchased merchandise from Toolware Inc. for $800, terms 3/10, n/30. 27 Paid Northern 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 $1,280, terms n/30. The cost of the merchandise sold was $830. Journalize the transactions using a perpetual inventory system. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Account/Description Debit Credit May 1 May 2 (To record the sale.) (To record the cost of inventory sold.) May 5 May 9 May 10 May 11 May 12 May 15 May 17 May 19 May 24 (To record the sale.) (To record the cost of inventory.) May 25 May 27 May 29 (To record refund of cash.) (To record return of inventory.) May 31 (To record the sale.) (To record the cost of inventory.) Post the transactions to T accounts. Be sure to enter the beginning cash and common stock balances. Then complete the income statement through gross profit for the month of May 2012 below. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1.) STEIN HARDWARE STORE Income Statement (Partial) Sales revenues $ Less: $ Net Sales Gross profit $ Calculate the profit margin ratio and the gross profit rate. (Assume operating expenses were $1,400.) (Round answer to 2 decimal places, e.g. 0.25.) Profit margin ratio Gross profit rate

 

Paper#9465 | Written in 18-Jul-2015

Price : $25
SiteLock