i ee antrose Company completed the following transactions during May of the current year. Montrose Company uses a perpetual inventory system. May 3, 5 6 8, 10. 33. 14, 45. 16. 19. 22, 24, 25, 31 Instructions Purchased merchandise on account from Floyd Co., $4,000, terms FOB shipping point, 2/19, 11/30, with prepaid transportation costs of $120 added to the invoice Purchased merchandise on account from Kramer Co., $8,500, terms FOB destination, 1/10, 9/30. Sold merchandise on account to C. F. Howell Co., ist price $4,000, trade discount 30% terms 2/10, 1/30. The cost of the merchandise Sold was $1,125. Purchased office supplies for cash, $150. Returned merchandise purchased on May § from Kramer Co., $1,300. Paid Floyd Co. on account for purchase of May 3, less discount. Purchased merchandise for cash, $10,500. Paid Kramer Co. on account for purchase of May 5, less return of May 10 and discount. Received cash on account from sale of May 6 to C.F. Howell Co., less discount. ‘Sold merchandise on nonbank credit cards and reported accounts to the card company, ‘American Express, $2,450. The cost of the merchandise sold was $980, Sold merchandise on account to Comer Co., $3,480, terms 2/10, n/30. The cost of the ‘merchandise sold was $1,400. Sold merchandise for cash, $4,350. The cost of the merchandise sold was $1,750. Received merchandise returned by Comer Co. from sale on May 22, $1,480. The cos returned merchandise was $600, Received cash from card company for nonbank credit card sales of May 19, less $140 service fee. the 1. Journalize the preceding transactions. = is 2. Journalize the adjusting entry for merchandise inventory shrinkage, $3,750.4 “—Gugpory Scott, former professional got star, operates Greg's Pro Shop at Bay Golf Course ‘the beginning ofthe current season on April 1 the ledger of Greg's Pro Shop showed Gash $2,500, Merchandise Inventory $3,500, and Comman Stock $6,000. The following bansactions were completed during April. ‘Age 5 Purchased golf bags, clubs, and bals on account from Hardy Co., $1,600, FOB shipping point terms 2/10, rv60. 7 Ped freight on Hardy purchase, $80. 9 Received credit from Hardy Co. for merchandise returned, $100 10 Sold merchancise on account to members, $1,100, terms n/30. The merchandise sold had a cost of $730. 12 Purchased golf shoes, sweaters, and other accessories on account from Titleist Sportswear, $860, terms 1 130. 14 Paid Hardy Co. in full less discount. 17 Receives credit from Titleist Sportswear for merchandise returned, $60. 20 Mace sales on account to members, $700, terms r/30. The cost ofthe merchandise sold was $480, less discount. 21 Paid Titleist Sportswesr in full. 27 Granted an allowance to members for clothing that di not ft properly, $30. 30 Receives payments on account from members, $1,200. he chart of accounts for the pre shop following: No. 101 Cash, No, 112 Accounts Receivable, No. 120 Merchand’se i No. 311 Common Stock, No. 401 Sales, No, 412 Sales Retums and Allowances, No. inciudes ry, No. 20; Anstructions (2) Journalize the April transactions using 2 perpetu (b) Enter the beginning balances in the ledger accounts (Prepare a trial balance on April 30, 2004,\ he allowing information appeared on Glendall Companys Pos. -Clesng Ti Cctber 3, 2013 the endo ts fical ear: Saas oan Account No Account Description Balance 101 cash $1000 106, Accounts Receivable 26000 uu Merchandise inventory 38,00 128 Prepaid rent 4,000 165 Store equipment 73.000 186 Accumulated depredationstore equipment 11,000, 201 Account Payable 91000 202 Insurance Payable 11000 251 Long term notes Payable 45,000 301 ‘Wes Glendall Capital 500 a3 Sales au Sales returns and allowances as Sales ascounte S02 Cost of gods old 0s Depreciato expense store equipment en Salaries Expense oa Interest Expense a7 Insurance Expence 640 Rent Expense 655, Advertsing Expense ‘During the year ended October 31, 2014, he following transaction occured 2: Purchased 550,000 of merchandise terms 230, 30. b. Sold merchandise for cash; 815,00 (cst of sles 509,000, «Paid 10,500n freight costs regarding the purchase ina) above 4, $20,000 ofthe merchandise purchase ina] above were etre aid forthe purchase in) above within the discount period {Pad for 12 mnths of rent in advance; $36,000. €. Sold $25,000 of merchandise on account; terms 2/10/30 (os of ale $37,00) $3,000 ofthe $2500 sale ing) was returned andestored to inventory cost sales $2.00) [Paid salaries of $50,000. |. Made a payment ofthe longterm loan; $8,000 principal and $,000 interest. Collected within the dicount period the Balance owing regarding the sle in) |. aid the outstanding insurance bl {using the information provided in the post-cosing tal balance, 2 Pepa nr 00 2 eon adel ce te Oe 20 = “ Jura sd pot ing entries dated October 31, 2014, based on the following atitional ‘mates ata oe Pao ane prone > Relaeecton ot ee eo avfsovering hate cre $5300 nga an werd ta cpense remained unpaid and unrecorded rarest cai balance on hana! of $19,008 7 Mohs ount ofthe chan iey ae Prepare an adjusted rl lance ean 1 o prepares sngestep income statement aa 3. journal a pont os tie. A Prope» pomcesng ia ala