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    Waters Hardware Store Completed The Following Merchandising Transactions in The

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    Amit Pandey
    Waters Hardware Store recorded various merchandising transactions during May 2014 including purchasing and selling inventory on account and for cash, receiving payments from customers and making payments to suppliers, and purchasing supplies. Transactions were journalized and posted to T-accounts. An income statement was prepared showing sales revenue, cost of goods sold, and gross profit for May. The profit margin and gross profit rate were calculated taking operating expenses into account.

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    Waters Hardware Store Completed The Following Merchandising Transactions in The

    Uploaded by

    Amit Pandey
    22 views1 page
    Waters Hardware Store recorded various merchandising transactions during May 2014 including purchasing and selling inventory on account and for cash, receiving payments from customers and making payments to suppliers, and purchasing supplies. Transactions were journalized and posted to T-accounts. An income statement was prepared showing sales revenue, cost of goods sold, and gross profit for May. The profit margin and gross profit rate were calculated taking operating expenses into account.

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    Waters Hardware Store Completed the Following Merchandising Transactions in The

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    Waters Hardware Store recorded various merchandising transactions during May 2014 including purchasing and selling inventory on account and for cash, receiving payments from customers and making payments to suppliers, and purchasing supplies. Transactions were journalized and posted to T-accounts. An income statement was prepared showing sales revenue, cost of goods sold, and gross profit for May. The profit margin and gross profit rate were calculated taking operating expenses into account.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views1 page

    Waters Hardware Store Completed The Following Merchandising Transactions in The

    Uploaded by

    Amit Pandey
    Waters Hardware Store recorded various merchandising transactions during May 2014 including purchasing and selling inventory on account and for cash, receiving payments from customers and making payments to suppliers, and purchasing supplies. Transactions were journalized and posted to T-accounts. An income statement was prepared showing sales revenue, cost of goods sold, and gross profit for May. The profit margin and gross profit rate were calculated taking operating expenses into account.

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    © All Rights Reserved
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    Waters Hardware Store completed the following

    merchandising transactions in the


    Waters Hardware Store completed the following merchandising transactions in the month of
    May. At the beginning of May, Waters’ ledger showed Cash of $8,000 and Common Stock of
    $8,000.May 1 Purchased merchandise on account from Hauke 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 Hauke Wholesale Supply for merchandise
    returned $200.9 Received collections in full, less discounts, from customers billed on May 2.10
    Paid Hauke 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 Friedrich
    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 Fasteners Inc. for $800, terms 3/10, n/30.27 Paid Friedrich 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.Waters Hardware’s chart of accounts includes Cash, Accounts
    Receivable, Inventory, Supplies, Accounts Payable, Common Stock, Sales Revenue, Sales
    Returns and Allowances, Sales Discounts, and Cost of Goods Sold.Instructions(a) Journalize
    the transactions using a perpetual inventory system.(b) Post the transactions to T-accounts. Be
    sure to enter the beginning cash and common stock balances.(c) Prepare an income statement
    through gross profit for the month of May 2014.(d) Calculate the profit margin and the gross
    profit rate. (Assume operating expenses were $1,400.)View Solution:
    Waters Hardware Store completed the following merchandising transactions in the
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